After three consecutive rises, prices in last night's Global Dairy Trade auction have dropped 2.0 per cent across the board.
The crucial Whole Milk Powder index - which has the biggest bearing on Fonterra's Farmgate milk price - also fell 2.0 per cent to an average US$2,985/MT.
Skim Milk Powder - Fonterra's second biggest 'reference product' - fell even further, with a 4.4 per cent drop to US$2,722/MT.
Anhydrous Milk Fat followed suit with a 2.6 per cent drop to US$4,002/MT and Cheddar dipped 0.8 per cent at US$3,786/MT.
Going against the grain, butter experienced the biggest rise, with a 3.9 per cent increase to US$3,822/MT, while Butter Milk powder also bucked the trend - up 1.2 per cent to US$2,617/MT.
A total of 35,418MT of product was sold, attracting 122 bidders over 14 rounds.
In a market update on October 15, Fonterra increased the midpoint of its forecast farmgate milk price for the 2020/21 season by 40 cents to $6.80, but retained its $1 range of between $6.30 and $7.30.
Global unease from Covid-19 lockdowns and the impending US election would be having an effect on the results, Fonterra's chief executive for Asia Pacific Judith Swales said.
"You'd have to think there is an atmosphere of some uncertainty out there. You've got the US elections and you've got Europe going back into lockdown – the UK obviously going into full lockdown – so there will be a little bit of nervousness out there," Swales told The Country's Jamie Mackay.
Although the market was down slightly, it was mostly stable and prices were still acceptable, Swales said.
"Overall we're still pretty comfortable that prices are in a good range."
Meanwhile, Swales put butter's success down to overseas influence.
"We continue to see really strong support from China and South East Asia and prices are competitive in the world market but this result and the last result have really narrowed the gap versus the EU numbers."