Whole milk prices were down 0.8% but skim milk powder prices were up 5.5%, to US$2501 a tonne.
The prices were a poor result for WMP, anhydrous milk fat, butter and butter milk powder.
They outweighed the good bounce for SMP and stronger results for cheddar and casein, AgriHQ analyst Susan Kilsby said.
Prices for SMP to ship in April and June were especially strong, with the indices for those contract periods up 44.8% and 10.8% respectively.
“This strength was driven by higher prices for UHT grade product – Contracts 1, 2 and 3 for this grade of product were up 44%, 61% and 46% respectively from when a price was last published.
“On the other hand, medium heat SMP to ship in May fell 1.3%, reaching a price of US$1905/t.
“SMP is running a bit short in NZ but there is plenty of stock elsewhere in the world,” Kilsby said.
Regular grade WMP to ship in May was down 1.6% but that was a little stronger than the NZX Dairy Derivatives market expected.
At market close yesterday the Derivatives market expected a fall of 2.5%.
“Fonterra increased its WMP offer volumes ahead of the auction as milk flows start to improve so buyers are unlikely to feel as much urgency to secure product.”
The price index for AMF was down 3.2%. Regular grade AMF to ship in May dropped 4%, far more than the 0.6% expected by the Derivatives market.
Butter prices were down 1%, with unsalted butter to ship in May easing 0.7%. The Derivatives market had expected a decline of 1.2% in this grade and contract.
There was some strong demand for AMF as a larger volume sold than at the February 20 event despite a smaller volume being on offer
Demand for butter was weaker.
Cheddar prices lifted 1.7%, driven by some short term demand with the prices for cheese to ship in April and May the only ones to lift.
“Cheddar prices are expected to bounce around similar levels for now,” Kilsby said.
“Both Europe and the Untied States have plenty of cheese available and have been competing strongly on the global market.”
BMP prices fell 4.3% and rennet casein prices lifted 2.2%.
There were 130 winning bidders and the auction lasted two hours and 42 minutes.
