GLOBAL - The Global Dairy Trade Price Index fell by 7.4 per cent from the previous auction at the latest event on Tuesday.
The fall continues a downward trend that started last week, following a price rally which lasted for the previous four events before that.
The average price in the latest auction was $2,569 (USD/MT, FAS).
Skim Milk Powder and Whole Milk Powder both fell in price by 8 per cent.
Butter prices fell by 5.6 per cent, and Cheddar showed the lowest price falls out of all the products on sale at -4.6 per cent.
The biggest fall was in Rennet Casein, which fell by 11.2 per cent.
The UK's levy board AHDB Dairy commented on the price falls, saying: "Using a 12-auction rolling average price to smooth the volatility suggests that the bottom of the market has been reached.
"Although a sustained recovery will only be achieved once we see a supply-end reaction. World milk production growth does now seem to be diminishing. NZ milk production fell back in September, while production growth in the US and Australia is slowing down.
"A slowdown in milk production accompanied by low prices will pull buyers back to the market, although this is likely to take some time. In the meantime, volatility, especially in an auction, will remain."
TheCattleSite News Desk