World dairy prices fell 3.1% in last night's Global Dairy Trade auction

World dairy prices fell 3.1% in last night's Global Dairy Trade auction, after making large gains in the past four auctions. The average winning price was $2,735/tonne. 

While the latest auction result was weaker than expected, it underscores the earlier caution about assuming further price gains this year. In contrast to the drop in New Zealand's milk production so far this season, Northern Hemisphere milk supply has yet to show any pullback in response to low prices. And there is no reason at this point to believe that global demand for dairy has strengthened.