Prices on Fonterra's latest globalDairyTrade auction fell for the fourth month in a row, dropping an average 8.3%.
The loss was evenly spread among its products.
Skim Milk Powder led the way falling 8.9% to under US$2800/tonne.
Whole Milk Powder is down 7.7% to US$2974/tonne and Anhydrous Milk Fat down 7.6% to US$4302/tonne.
Fonterra globalDairyTrade Manager Paul Grave says the latest drop is down to the market adjusting to increasing global supply.
“The market was very much driven by concerns around short-term supply of product. Those concerns have now abated with more product available from New Zealand, a more positive outlook from Australia and product becoming available from Europe.
"So the focus really moves away from the supply side of the equation and to the demand side of the equation and to what the global economy’s doing and how that will affect consumer demand. ”
The next auction is on September 7th.
