Dairy prices have fallen for the fourth consecutive time in the latest global dairy auction.

The average price at the fortnightly sale fell another five per cent to US$3913 dollars per tonne, after falling five per cent in the previous auction.

A total of 27,500 tonnes was sold, which is an 18.4 per cent increase on the previous auction.

The price of whole milk powder, which strongly influences the payouts for local farmers, was 6.1 per cent lower at US$3544 per tonne.

Prices for other products, including butter, cheese and skim milk powder, also fell.

NZX dairy insights manager Stuart Davidson says the result is not a great surprise.

"Wider economic and political concerns in the world continue to concern all markets, not just dairy.

"However, even with macro-economic factors included, I'm not convinced that this auction is a direction creating event; to me, this result continues the "wait and see" pattern that has become apparent over the last five auctions."

His view is based on the fact that there is a large number of bidders taking part in the event, albeit buying smaller volumes of dairy products.

"This trend is likely a result of the current outlook of the wider economy for some buyers, with uncertainty of the future still front and centre for most, creating an unwillingness to be burdened with heavier than required pipelines of product at this point in time."

Looking ahead, Davidson says the auction will result in an easing of the spot milk price locally and milk price expectations for the current season.

"This could see Fonterra updating their milk price forecast for the current seas, considering the scale of the price slide over the last two auctions."

Fonterra's milk price forecast for the 2022/23 season is between $8.75 and $10.25 per kilogram of milk solids.

-RNZ.