Milk prices have fallen by four per cent in Fonterra's monthly internet auction,
globalDairyTrade.
According to Fonterra, the market remains cautious as the global recession continues to weigh on consumer demand.
The trading manager, CRA International, advised Fonterra that the average price achieved across all products and contract periods for Whole Milk Powder (WMP) was $US2144 per tonne FAS New Zealand Port, 4.1pc lower than the previous event in April.
Prices ranged from $US2085/t FAS to $US2220/t FAS.
However, prices rose for contracts with short-term delivery by almost 2pc.
"Today’s result confirms our expectation that dairy markets will be characterised by increased uncertainty in the future and we expect prices will continue to cycle around current levels," said Nigel Kuzemko, director of portfolio optimisation with Fonterra Global Trade.
"Still, globalDairyTrade continues to achieve its goal of being an accepted reference point for global dairy prices, with last night's trading event attracting strong international interest and a record number of participants."
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