Global dairy product prices fell again at the latest GlobalDairyTrade (GDT) auction, due to a seasonal lift in New Zealand supply and the recent Russian sanctions on European Union dairy exports.
Prices are now 42.2% as against the corresponding period a year ago.
Major falls were registered in the two key segments for New Zealand producers - whole milk powder and skim milk powder at the auction.
Prices for whole milk powder fell by 4.3% to an average price of $2,673 a tonne while skim milk powder prices dropped by 9.5% to $2,600 a tonne.
Last week, the European Commission said it would open private storage aid for butter, skimmed milk powder and certain cheeses in order to ease the impact of Russian restrictions on imports of EU dairy products and to limit the negative effects on the internal market.
ANZ said: "So despite European supply now heading into the seasonally lower period and the European Commission announcing last week they will open Private Storage Aid until the end of the year the market seems to be anticipating high supplies."
Separately, New Zealand-based Fonterra has been trying to manage the volume offered in recent auctions in an attempt to support prices.
