Close on 6% drop in milk prices at auction

Milk prices at Fonterra’s latest global online dairy auction fell 5.9% this week.

They have fallen more than 30% since a near four-year peak in March last year, but remain above May levels, because they jumped 13.5% on Jun 5.

Rabobank experts predict global diary market stable pricing through the third quarter, a slow squeeze in the fourth quarter, and price recovery in early 2013,