Prices fell 1.6%, or $NZ74, a tonne compared with January's sale, well within expected market fluctuations, said Fonterra's globalDairyTrade manager, Paul Grave.
The average contract price for whole milk powder was $NZ4586, with prices ranging from $4471 to $4725.
Mr Grave described the sale result as positive and showed the market had reached a balancing point, with previous pricing gains retained.
"It reflects a relatively stable market and price movements were within the expected range," he said.
This was the second consecutive monthly auction in which prices fell and followed five months last year in which values almost doubled.
The market was still at historically high levels, but Mr Grave said they could come under pressure in the United States and Europe, where stocks were relatively high and the northern hemisphere dairy season was about to start.
He expected price volatility to continue for some months.
"We will see prices bump around and rise and fall, based on supply and demand factors," he said.
The average price for anhydrous milk fat (AMF) was an example of market volatility, falling 7.9% to $5891 at this week's sale, $501 lower than January.
Mr Grave said prices for AMF remained high by historical standards.
GlobalDairyTrade prices reflected changes seen in February's ANZ commodity price index, where prices eased 2% from the preceding month.
Next month, Fonterra will add skim milk powder to its globalDairyTrade offering, taking its annual sales to 400,000 tonnes of product, or 20% of New Zealand's production.
Mr Grave said skim milk powder was a key product in Europe and the US dairy industries and had previously been subject to government price support.
