World dairy prices slump 5pc overnight

Average prices of dairy products fell to their lowest level since early December in Fonterra's latest online auction, adding to evidence the steam in coming out of global commodity prices.

The GDT-TWI Price Index fell 5.1 per cent to US$3,796 a metric tonne, according to results posted on the globalDairyTrade auction website. That follows a 6.7 per cent decline in the last sale two weeks ago.

Prices fell for a third straight sale though they're still well above the 10-year average for the Real GDT-TWI. Global commodity prices have eased amid signs economic growth isn't as sturdy as expected. The Thomson Reuters/Jefferies CRB Commodity Index of 19 commodities has declined about 7 per cent from the 2.5-year high it reached in late April.

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Skim milk powder fell 5.2 per cent to US$3,488 a tonne and whole milk powder dropped 4 per cent to US$3,475 a tonne. Anhydrous milk fat fell by an average 12.5 per cent to US$4,614 a tonne, milk protein concentrate dropped 10.2 per cent to US$5,525 a tonne and rennet casein fell 1.4 per cent to US$9,992 a tonne.

Butter milk powder, which hasn't traded in recent auctions, rose 0.3 per cent to US$3,345 a tonne.

There were 97 winning bidders from 122 participants over eight rounds. The platform has 348 qualified bidders, up from 347 in the last auction.