The overall price index was down 1.2% as prices for skim milk powder, cheddar and casein retreated.
Whole milk powder prices lifted 0.1%. Butter and anhydrous milk fat were also steady.
Demand for WMP from north Asia was the strongest it’s been since late last year, AgriHQ analyst Amy Castleton said.
WMP to ship in May was up 1.3% though the futures market indicated a drop of 1.3% was likely.
“New Zealand milk production data out earlier this week will likely also have helped the WMP result along.
“February production was down 3.9% on a milksolids basis as poor climate conditions earlier in the season continued to reverberate,” Castleton said.
SMP prices plummeted 8.6% but the price for medium heat SMP to ship in May lifted 1.6% to US$1935/t.
“The overall change in SMP prices was again led by movements in UHT grade product. The contracts that rose dramatically last time – product shipping in April, May and June – all fell between 30% and 40% this time around.
“Global Dairy Trade’s investigation into SMP prices at the March 6 event found the prices achieved for UHT grade product at that event reflected multiple bidders’ strong need to secure higher quantities of product than were offered.
“These buyers have evidently now secured their needs,” she said.
The price for regular grade AMF to ship in May lifted 1.4%.
The price for unsalted butter to ship in May was down 1%.
Butter prices were stronger for product to ship in July and August, indicating some longer term demand.
“It has been difficult for buyers to find butter on the global market to fill short term needs.
“While plenty of milk has been coming out of Europe, it has not had enough butter to meet near-term demand.”
The overnight result suggested buyers had now filled their immediate butter needs.
Cheddar prices fell 3.9% with prices across all contract periods declining.
“There is plenty of cheese available from both Europe and the United States, which likely continues to put pressure on this commodity.
Rennet casein prices fell 2.9%.
There were 125 winning bidders. A total 18,635t of product was sold.
