Third straight fall leaves dairy prices lowest in two months

In the third consecutive fall in prices, dairy is at its lowest level in two months in the latest global auction overnight.

Dairy prices are at their lowest level in two months. Stock photo Photo: RNZ Cosmo Kentish-Barnes

The average price fell 1.2 percent to $US3,632 a tonne. It was the third consecutive fall in prices, which are back to where they were in mid-January.

The price of whole milk powder, a key factor in setting returns to local farmers, was fractionally higher at US$3,226 a tonne.

There were sharp falls in skim milk powder and cheese.

The volumes sold were down more than 3 percent.

Rural analytical and research company AgriHQ said the price falls reflected that buyers at the previous auction now had the products they wanted.

It said the fall in milk production in New Zealand is probably helping to underpin the price of wholemilk powder.