Wholemilk powder prices continued to decline while other products showed signs of improvement at this morning's GlobalDairyTrade auction - the last before Fonterra revises its farmgate milk price forecast for the current season.
The average winning price was US$2513 a tonne and prices overall were down 1.1 per cent since the last auction in mid November.
The price of whole milk powder - the most important product group for New Zealand producers - dropped by 7.1 per cent from the last sale to US$2229 a tonne.
Fonterra has said wholemilk powder prices would need to reach US$3500 a tonne by next March if its current farmgate milkprice of $5.30 a kg is to be achieved.
Economists had expected prices to be flat, at best.