Global dairy prices have plunged at the latest Global Dairy Trade (GDT) auction, losing previous gains and falling to a 16-month low.
Dairy commodity prices were down 4.2 percent at the April 21 GDT.
The GDT Price Index is now approximately where it was at the beginning of 2019, said NZX dairy derivatives analysts.
Prices were down for all commodities except cheddar and lactose, which lifted 1.9 percent and 12 percent respectively.
The largest fall in the main commodity groups was anhydrous milkfat (AMF), which plummeted 7 percent.
NZX Dairy Derivatives analyst Amy Castleton said AMF was expected to ease just 1 percent.
Whole milk powder (WMP) prices fell 3.9 percent while regular grade WMP to ship in June fell 4.2 percent.
Skim milk powder (SMP) prices dropped 4.9 percent
Castleton said volumes sold were up on the previous event, except for SMP which was down slightly.
"Compared to the equivalent event last year, volumes were also up, except for butter, which was down slightly.
"Demand therefore seems to have been reasonably strong; however buyers were evidently not willing to accept higher prices," said Castleton.