Dairy prices stable in overnight auction

World dairy prices have remained largely unchanged in Fonterra's latest online auction, run overnight.

The benchmark trade-weighted index was down just 0.1 per cent from the last auction held two weeks ago.

Whole milk powder prices fell 1.7 per cent, while skim milk powder prices rose 2.88 per cent.

Prices were also stable in the last auction, with the benchmark index falling 0.1 per cent.

Fonterra chairman Henry van der Heyden warned in March that there could be a downward correction in prices and farmers should always be prepared for a drop on global commodity markets, particularly if recent steep rises eat into demand.

The next auction is being held on May 18.

See more details of the auction here.

-HERALD ONLINE