Milk powder prices slipped a little more in Fonterra's latest global on-line auction - a further indication that dairy commodity prices may have peaked.
The average whole milk powder price eased by 1.6% on last month to $US3256 per tonne.
It follows a fall of 7% in January, the first drop in six months after prices almost doubled.
Anhydrous milk fat, also dropped in price by almost 8%, after a lift of 4% in January.
Global dairy trade manager Paul Grave says demand has held up, considering that prices were under pressure in the United States and Europe over the past month.
Production is down in Australia and parts of New Zealand due to drought.
Mr Grave says the market is very finely balanced and buyers are aware it could go either way.