6 Jul 2011

Fall in online dairy prices

1:48 pm on 6 July 2011

Dairy prices have fallen in Fonterra's latest online auction.

Fonterra's global dairy trade weighted index fell nearly 7% to an average selling price of $US4017 per metric tonne.

Prices fell across the board, with whole milk powder, which makes up the bulk of sales, and skim milk powder, both fell 7%.

Rennet casein was the only commodity to buck the trend, with prices lifting by an averge 1%.

Prices fell more than 2% at the last auction a fortnight ago, but are still 3% higher than this time last year.

BNZ economist Doug Steel says prices for other commodities like wheat, corn and oil have also fallen in recent weeks.