This indication left observers to suggest that prices may fall further at next week’s event.

Fonterra has increased the amount of WMP (whole milk powder) in Contract 2 of next week’s auction by 14% to 4965 tonnes.

WMP futures quote for June delivery dropped by US $230 (€213) to $2,400 (€2222) per tonne on NZX Dairy Futures Market. WMP fell by 9.6% to $2928 (€2711) per tonne at the last GDT event.

Fonterra has announced it would add an additional 12,140 tonnes of product to the GDT auction over the next twelve months, with 90% of the increased volume coming in the next three months.

More than half of this increase comes from WMP with the remainder coming from SMP (skim milk powder), butter and anhydrous fat.

There is not a lot to support the market at the moment as there is an increase in the volume of milk being produced since rainfall has arrived in NZ.

Many buyers are on the sidelines as they await the removal of quotas in the EU at the end of this month to see if increased production would weaken prices further.