The Global Dairy Price index has declined for the eighth time of 10 sessions.
Prices fell or remained flat for the eighth consecutive session in the Global Dairy Trade auction overnight, reflecting continued bearishness in the market.
RaboResearch dairy analyst Emma Higgins says headline prices over that period have dropped 19% and are now at their lowest since October 2016.
The index fell 1.3% to $US2934 a tonne with the benchmark whole milk powder (WMP), which comprises more than half the volume sold, dropping 1.8% to $US2768/t.
WMP volumes will increase by 20,450 tonnes over the coming 12 months but buyers are remaining on the sidelines, Ms Higgins says.
However, Chinese buyers were more active in this market as they stock up ahead of a greater volume of whole and skim milk powder being allowed in tariff-free from January 1, 2019.
A small amount of rennet casein was the only commodity to rise, jumping 1.7% to $US5421/t.
Cheddar and lactose both slumped 3.5% to $US3503/t and $US910/t respectively. Skim milk powder fell 1.1% to $US1980/t.
Butter was largely unchanged at $US4270/t, while anhydrous milk fat eased 0.6% to $US5294/t. Butter milk powder was not offered.
The total volume sold was up slightly at 39,143 tonnes compared with 38,811 tonnes at the previous auction on September 4.
The 149 winning bids was up from 126 previously and came from 173 participants at the 15-round auction. The number of registered bidders was 503, down from 541 at the previous auction.
The next auction will be on October 2.
