WELLINGTON (Reuters) - Global dairy prices dropped for a fourth consecutive time at a fortnightly auction held early on Wednesday, as volume of the products increased.
The Global Dairy Trade (GDT) Price Index dipped slightly by 0.4%, with an average selling price of $3,302 per tonne, in the first auction for the month. The index fell 3.8% at the previous sale.
A total of 24,711 tonnes was sold at the latest auction, an increase of 1.9% from the previous one, the auction platform said on its website (https://www.globaldairytrade.info).
The drop in prices was driven by declines in all commodities except skim milk powder, which rose 3.2%, and whole milk powder which was flat.
Prices of anhydrous milk power, butter and butter milk powder fell 1.9%, 4.8% and 11.9%, respectively.
The auction results can affect the New Zealand dollar <NZD=> as the dairy sector generates more than 7% of the nation's gross domestic product.
The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.
GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd <FCG.NZ>, but operates independently from the dairy giant.
U.S.-listed CRA International Inc <CRAI.O> is the trading manager for the twice-monthly Global Dairy Trade auction.
A number of companies use the platform to sell milk powder and other dairy products.
The auctions are held twice a month, with the next one scheduled for July 16.
(The story was corrected to remove the company names in paragraph 10 as they no longer use the platform)
(Reporting by Praveen Menon, editing by G Crosse)
