Prices at Fonterra's fortnightly GlobalDairyTrade auction have dipped slightly, with markets expecting the drop because of more whole milk powder product on offer.
The GDT index dropped 0.5 percent with the averaged price at US$3656 (NZ$5283) per tonne on Wednesday morning. It was the first negative result since the beginning of October and ended a run of four straight increases.
The important whole milk powder price was down 0.8 percent to US$3568.
"This slightly negative GDT result will have minimal impact on the farmgate milk price," AgriHQ dairy analyst Susan Kilsby said, adding that the result is "certainly still strong enough" to support the $6 per kilogram of milk solids price currently forecast by Fonterra.
Fonterra last week said it lifted the amount of whole milk powder on offer for this auction.
"There was not quite enough demand to soak up the additional product offered," Ms Kilsby said.
Anhydrous milk fat and lactose also fell, while there were gains for rennet casein, butter milk powder, cheddar and butter as skim milk powder held steady.
The New Zealand dollar last traded at 69.21 US cents at about 12.17pm in New York, compared with 69.29 US cents at 5pm in Wellington on Tuesday.