The average price at the fortnightly global dairy sale fell 2 percent to $US4432 a tonne ($NZ6970), after falling 8.5 percent in the previous auction.
Photo: 123rf
The price of wholemilk powder, which strongly influences the payouts for local farmers, was down nearly 4.9 percent to $US3934 a tonne ($NZ6187).
Prices for other products such as butter, skim milk powder and cheddar also eased.
Fonterra recently shaved its forecast payout for the current season by 30 cents to a mid-point of $9.30 per kilogram of milk solids, which is still a record high.
NZX dairy analyst Stu Davison said prices had settled following the previous auction's dramatic crash.
"This event has been multifaceted and a little bit odd, but overall, it highlights some pertinent trends with the market currently. Underlying demand is still smouldering, with most buyers operating in a hand to mouth fashion.
"A lot of opportunity buying was seen at this event, with buyers who were not as active as the last event making the most of the significant discount created by the previous auction."
He said buyers from South and Central America, as well as the Middle East, made the most of the lower level of demand to secure more volumes at lower prices.
"So, with another auction concluded, my outlook for the entire dairy complex remains one of buoyant optimism.
"Demand is still relatively steady, as prices are finding a new floor price that buyers are willing to participate with."
