Average prices of dairy products fell for the sixth straight sale in Fonterra's latest online auction, reaching the lowest level in 10 months.
The GDT-TWI Price Index fell 1.4 per cent to US$3,580 a metric tonne, according to results posted on the globalDairyTrade auction website. Whole milk powder fell to its lowest level since August last year.
Milk powder prices have declined 16 per cent from their peak in March, based on the ANZ Commodity Price Index and last week Fonterra confirmed its forecast for a decline in payments to farmers for the 2012 season, after what is expected to be a record payout for 2011.
The company first flagged the payment drop in May and chairman Henry van der Heyden said last week that it is sticking to the forecast even in the face of "volatile economic and market conditions."
Whole milk powder fell an average 1.6 per cent to US$3,314 a tonne in the latest sale. Skim milk powder rose 0.3 per cent to US$3,444 a tonne. Anhydrous milk fat rose 2 per cent to US$4,353 a tonne and milk protein concentrate rose 4.9 per cent to US$6,263 a tonne.
