Prices of dairy products fell for the first time in 10 online global auctions, led by the whole and skim milk powder as the volume on offer gained for a second session from a two-year low.
The GDT-TWI Price Index fell 7.3 per cent compared to the last sale two weeks ago, the first decline this year. The average winning price fell to US$4,597 a tonne from US$4,968 a tonne in the previous sale, which was the highest on record on the GDT platform that began in July 2008. Whole milk powder, the biggest product by volume, fell 10.2 per cent to US$4,731 a tonne.
Prices have halted their ascent as rains signalled the end of drought in some North Island regions and as economic data showed global growth may be faltering. The official PMI figures for China, out yesterday, showed the manufacturing measure undershot expectations in New Zealand's biggest export market.
Westpac Bank economist Nathan Penny said as the new season's product continued to replace this season's drought-hit offerings prices should drop further.