The Global Dairy Trade (GDT) index has recorded another drop, marking a sixth consecutive week of decline.
At the latest GDT event on Tuesday (6 July), the overall price index fell by 3.6 percent, on the back of price drops for milk powders.
While this was the sixth consecutive drop in prices at the auction, the overall average remains 23% up on the same time last year.
Butter milk powder (BMP) saw the biggest drop on the day, declining by 9.8 percent.
According to analysis by AHDB, high prices and growing milk supplies, particularly from New Zealand and US, are likely to be driving down prices.
Current forecasts suggest strong growth will continue in both regions, leading to higher exports, and the potential for further pressure on commodity pricing.
"Demand from China has been strong, and has underpinned the earlier price increases," said Patty Clayton, AHDB lead analyst for dairy.
"These high prices may be curbing demand from more price-sensitive markets.
"But it will be import demand levels from China which will remain the main driver of dairy commodity pricing through the second half of this year."
