International dairy commodity prices have dipped again as supply continues to outweigh demand.
Prices were down two percent at the November 6 Global Dairy Trade (GDT) event.
- Dairy production season starts with a hiss and a roar
- Global milk supply growth slowing despite bumper start to NZ season
The only commodities to see a lift in price were skim milk powder (SMP) and butter milk powder.
Whole milk powder (WMP) prices fell 2.9 percent.
The average price of US$2655 a tonne is the lowest achieved for WMP since August 2016, while regular grade WMP to ship in January plunged 6.4 percent.
NZX Dairy Analyst Amy Castleton isn't surprised at the drop.
"WMP offer volumes were high at this event, so prices had been expected to come down," she said.
She believes the trend is set to continue.
"WMP offer volumes are forecast to peak at the November 20 event, so the expectations of continued milk supply growth from NZ will put ongoing pressure on WMP prices," said Ms Castleton.
Butter prices lost 1.7 percent at the November 6 event.
Unsalted butter to ship in January dropped 5.8 percent.
"Ahead of the event, this grade and contract of butter had been expected to fall 1.9 percent, though there has been very little trading in butter futures recently," she said.
The event dragged out to over three hours indicating there was some strong competition in the market.