Prices of dairy products fell for the first time in three sales on Fonterra's GlobalDairyTrade platform, with declines in most of the products on offer.
The GDT-TWI Price Index fell 1.6 per cent compared to the last sale two weeks ago. The average winning price declined to US$3,688 a metric tonne from US$3,737 a tonne in the December 6 sale. The price of whole milk powder declined 1.5 per cent to US$3,589.
See more details of the auction here.
Prices of commodities have declined through much of December amid speculation global growth is faltering in the face of Europe's debt crisis. The Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities touched a two-month low last week. Still, Fonterra this month raised its forecast payout to farmers for 2012, citing a 'modest' recovery in prices over the past two months.
The average winning price for skim milk powder declined 3.2 per cent to US$3,312 a metric tonne. Among other products on offer, anhydrous milk fat rose 4.8 per cent to US$4,183 a tonne while butter milk powder dropped 3.8 per cent to US$3,280 a tonne.
