A fall in butter prices at the overnight auction dragged down the index. Dairy prices eased in the overnight global auction, as a lift in the price of milk powders failed to offset a decline in butter and milk fat prices. Butter prices slumped 12 per cent to US$5035/t, weighed down by extra volume on offer. Davison said the butter price fall may be due to weaker consumer demand following the slow easing of lockdowns globally. In March, Fonterra raised its forecast milk price for this season to between $7.30 and $7.90 per kilogram of milk solids, with a mid-point of $7.60 per kgMS.

Source: Stuff May 04, 2021 21:00 UTC