Wholemilk powder fell 2 percent to U$3264 a tonne. Photo: 123rf
Dairy prices have fallen in the latest global auction overnight.
The average price at the auction fell 1.5 percent to US$3414 (NZ$5174) a tonne.
It follows the 3.2 percent gain in the previous auction a fortnight ago.
The price of wholemilk powder, which strongly influences the payouts for local farmers, fell 2 percent to U$3264 a tonne.
Dairy prices have been sitting around two-years lows amid oversupply and reduced demand since peaking at record highs in March last year.
Butter prices rose 3.8 percent, cheddar rose 1.5 percent, while skim milk powder fell 2.4 percent.
NZX analysts said the outcome of the auction was not the "steadying result the market was hoping for".
"Hopes had been that we would see some consolidation at this event and direction would be a little clearer. Well, so much for that. It seems the market has been searching for direction for quite some time now and that apparently hasn't changed yet," NZX said.
It said data from New Zealand likely contributed to the fall in prices, with the view that supply remained plentiful.
"Just ahead of the auction a positive milk production result was released for January. The rain from last week's cyclone will also set up pastures well for the next few months, particularly around Waikato.
"So the likelihood that there will be enough product out of New Zealand, in a volatile, price sensitive market has meant that buyers weren't willing to commit to higher prices for the most part," NZX said.
