The last GlobalDairyTrade auction for the season is tomorrow and dairy analysts say indications are that prices may be about to bottom out.
At the last sale, on May 6, the GDT price index dropped by 3.5 per cent from the previous sale in April.
AgriHQ dairy analyst Susan Kilsby said the futures market was not offering any clear direction on where prices were heading this time, but she expected the market to flatten.
The key dairy nations in Europe continued to produce more milk, which was bad news for milk powder producers, but butter prices looked to be improving, she said.
ANZ rural economist Con Williams said prices might have bottomed for now. He said an improvement in the key product - whole milk powder - of up to 5 per cent might be possible.