PREDICTED production growth in New Zealand, Europe and US took the edge off whole milk powder prices last week.
Whole milk powder prices on Global DairyTrade dipped another 2.8 per cent to an average $US3227 a tonne - the lowest price since August 2010.
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Dairy Australia trade and strategy industry analyst Norman Repacholi said the result was a "product of the on-going global supply dynamic".
"Buyers are factoring in the production growth in New Zealand - primarily for WMP - but also considering how increased production in the EU and US may impact prices," he said. "Buyers are not too bearish as the forward prices are still comparable to current levels, but I think they'll be conservative with orders in the short term."
The auction of 26,589 tonnes of product recorded an overall price increase of 1.5 per cent to $US3277 a tonne.
Murray Goulburn offered lactose for the first time on the auction system and it averaged $US1930 a tonne for a July-September delivery.
Mr Repacholi described the Murray Goulburn lactose price as quite good while cheddar (up 13.2 per cent to $US3371 a tonne) and rennet casein (up 13.8 per cent to $US7290 a tonne) were coming back in line with other world prices.
Skim-milk powder prices dropped 0.8 per cent to $US3078 a tonne.
Meanwhile, up to 800 head of dairy cattle will be offered at auction in Victoria this week.
Sales were held at Warragul and Camperdown yesterday, and about 485 head will be auctioned in the Western District - a Jersey sale today at Colac and then a complete herd dispersal at Warrnambool on Friday.
Charles Stewart agent Tim Gibson said there had been "a little bit of interest" for the Western Spectacular annual Jersey sale.
Landmark agent Gerard Delaney, who will sell 410 head at Warrnambool, said strongest interest was from northern Victoria and Gippsland for autumn and spring-calving lots.