Milk prices extended their decline at Fonterra’s latest dairy auction overnight, marking the third fall in a row.
Fonterra’s GDT-TWI Price Index fell 6.4 per cent versus the last sale two weeks ago, with the average winning price coming in at US$2618 a metric tonne.
That’s 41 per cent lower that the 2011 peak, with the news weighing on the New Zealand dollar at the start of the trading day.
The kiwi was last at US76.88 cents, down from US77.72c yesterday, its lowest level so far this year.
The biggest price drop came from the anhydrous milk fat product category, which fell 11.9 per cent, followed by an 8.9 per cent decline in whole milk powder, and a 5.4 per cent fall in skim milk powder.
A total of 39,795 metric tonnes was sold versus an upper limit of 40,150 metric tonnes. A total of 147 participants out of a pool of 635 qualified bidders took part, with 136 winning bidders.