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'<br>By Lucy Craymer<br> <br>WELLINGTON, April 6 (Reuters) - Global dairy prices are coming off record highs as demand from China has fallen away, hit by a new wave of COVID-19 and lockdowns in several cities, including the financial capital of Shanghai.<br> <br>Supplies of milk worldwide have tightened after a combination of dry weather in New Zealand, rains in Australia and war in Ukraine pushed up feed costs for producers, particularly in Europe and the United States.<br> <br>The Global Dairy Trade price index fell 1% overnight, adding to a drop of 0.9% in the prior auction in mid-March.<br><br>The index had hit a record high in the March 1 auction.<br> <br>Data from the recent auction showed a significant drop in Chinese buyers, said Stuart Davison, dairy insights manager at NZX Ltd., which he attributed to anti-COVID lockdowns that made it tougher to buy dairy products.<br> <br>"It's very hard to determine if the demand will pick up while the lockdowns are in place, and those restrictions impact their consumption," Davison added.<br> <br>The consumption fall had led to [https://www.travelwitheaseblog.com/?s=increased%20local increased local] production of whole milk powder, reducing demand for New Zealand products, he added.<br> <br>Lockdowns in Shanghai, China's most populous city with 26 million people, and the northeastern province of Jilin have weighed on commodities in recent weeks including oil.<br><br>website <br>The products mainly affected by the fall are those China usually buys, such as whole milk powder and [https://Www.Content-Spinning.fr/ redaction content Spinning] butter.<br> <br>Analysts say it is hard to tell if or when Chinese demand will pick up.<br> <br>"Buyers (who, after all, have their ear close to the ground) aren't expecting the current whole milk powder glut to last," said ASB Bank economist Nat Keall said in a note.<br> <br>This was despite the difficulty of predicting COVID-19's path in China or how tough the public health response might be, he added.<br><br>(Reporting by Lucy Craymer; Editing by Clarence Fernandez)<br><br>adverts.addToArray({"pos":"inread_player"})Advertisement'