Anhydrous milk fat (AMF) – which leapt 13.9 per cent two auctions ago, and picked up a further 4.0 per cent in the last event, fell 1.7 per cent with an average of US$5811/MT.
Butter milk powder added to the downward spiral - dropping 4.4 per cent to an average US$3374/MT, after not being offered last time.
Cheddar, which gained 2.1 per cent two weeks ago, fell 3.8 per cent in this event, to an average US$4966/MT.
Figures for lactose were unavailable and sweet whey powder was not offered at this event.
30,852 MT of product was purchased by 125 successful bidders, compared to 26,106 MT and 113 winning bidders last time.
Last month, Fonterra announced a final 2021/22 payout of $9.50 per kgMS, with a total dividend of 20 cents a share.
The co-op stuck to its forecast for 2022/23 of a farmgate milk price range of $8.50–$10.00 per kgMS, with a midpoint of $9.25 per kg.
Its forecast 2022/23 normalised earnings guidance is in a range of 45 to 60 cents.
Fonterra's former chief financial officer Marc Rivers likened the latest drop to "an arm wrestle" between tight supply conditions and struggling demand.
A strong US dollar was also having an effect, he told The Country's Jamie Mackay.
Listen below:
"It's putting purchasing pricing pressure on demand for our customers."
Near-term contracts were hit hardest, compared to longer-term, which were at "significant premiums," Rivers said.
"It seems like a bit of a short-term response, but let's see who wins the arm wrestling match."
Also in today's interview: Rivers talked about how weather conditions were impacting volume and what a low exchange rate could mean for buyers.
