Global Dairy Trade auction prices have continued their downward drift from highs seen earlier this year, recording a sixth consecutive fall, with prices across the board down 3.6 per cent from the previous event.
Whole milk powder - which has the biggest influence on Fonterra's farmgate milk price - fell3.0 per cent to an average US$3864/MT, while skim milk powder - Fonterra's second biggest reference product - dropped 7.0 per cent to an average US$3126/MT.
The biggest declines, however, came from Butter Milk Powder, which was not offered at the previous event and fell 9.8 per cent to an average US$3298/MT and cheddar, which slid 9.2 per cent to an average US$3949/MT.
Butter, which had been hovering above the US$5000/MT mark earlier this year, softened a further 3.2 per cent to an average US$4458/MT, while Anhydrous Milk Fat dropped 0.9 per cent to an average US$5632/MT.
Lactose remained stagnant on an average US$1238/MT.
The volume of product traded lifted slightly from the previous event with a total of 24,278 MT of product was sold to 128 successful bidders.
On May 26, Fonterra announced an opening forecast Farmgate Milk Price range for the 2021/22 season of $7.25 - $8.75 per kgMS, with a midpoint of $8 per kgMS.
