Prices fall after first GDT auction for 2016
Dairy prices have fallen in the first GlobalDairyTrade auction for 2016 with whole milk powder leading the decline.
The average winning price was 1.6 percent down to US$2,458 (NZ$3,643) to end a two auction rally in prices prior to Christmas.
Whole milk powder fell 4.4 per cent to US$2,210 a tonne, while skim milk powder and anhydrous milk fat also dropped.
Lactose rose by 11.4 percent and there were also gains for butter, cheddar, rennet casein and butter milk powder.
The AgriHQ 2015-16 Farmgate Milk Price fell 7 cents to $4.60 per kilogram milksolids which is in line with Fonterra's current 2015-16 milk price forecast.
"The weak GDT results are disappointing given the significant gains anticipated by the market," AgriHQ analyst Nick Handley said in a note.
"However, global demand for dairy commodities continues to be weak relative to global milk supply."
The NZX Dairy Futures market had anticipated a lift in prices for both whole milk powder and skim milk powder from the December 15 auction, according to Mr Handley.
The New Zealand dollar last traded at 66.88 US cents at about 11am in New York, compared with 67.52 US cents at 5pm in Wellington the previous day.
Some 25,671 tonnes of product was sold, up from 24,888 tonnes at the last auction of 2015.