# Milk price surges to highest point in 2 years - NZ Herald

> Whole milk powder prices at the GDT auction rose nearly 20%, reaching their highest level in over two years. Economists raised farmgate milk price forecasts after Fonterra revised its 2016/17 production estimate lower because of heavy October rain in key dairy regions.

- Date: 2016-11-01 · published 2016-11-01T12:00:00.000Z
- Category: weather · region New Zealand · magnitude high
- Page: https://feedsoft.ai/events/4649-milk-price-surges-to-highest-point-in-2-years-nz-herald
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Wet-weather-driven production cuts and stronger Chinese demand signal a tighter market, supporting higher milk prices and farm payouts.

## Read by commodity

- MILK: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2016-11-07 | 5 | +14.8% | 3.9 | Heavy October rain cut NZ output expectations and WMP rose nearly 20%, tightening global supply and supporting US dairy prices. |
| MILK | 2016-11-03 | 1 | +11.9% | 9.8 | Whole milk powder jumped nearly 20% to a two-year high on lower NZ production estimates from heavy rain, a supply-driven global price shock. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2017-07-06 | [Food Prices Near 2-Year High Thanks to a Record Surge in Butter and Wheat - Bloomberg](https://feedsoft.ai/events/6181-food-prices-near-2-year-high-thanks-to-a-record-surge-in-butter-and-wheat.md) | -0.3% | +5.2% |
| MILK | 2019-06-06 | [Weekly Digest II: Class III and IV milk prices move to two-year highs; ‘forage crisis’ looms - Progressive Dairy \| Ag Proud](https://feedsoft.ai/events/58736-weekly-digest-ii-class-iii-and-iv-milk-prices-move-to-two-year-highs-forage.md) | +1.2% | +7.4% |
| MILK | 2019-07-01 | [Milk, corn prices up in 2019 \| Idaho Farm Bureau](https://feedsoft.ai/events/4199-milk-corn-prices-up-in-2019-idaho-farm-bureau.md) | +6.5% | +7.4% |
| MILK | 2018-06-20 | [Where are milk prices headed in rising dairy markets? - Farmers Weekly](https://feedsoft.ai/events/64546-where-are-milk-prices-headed-in-rising-dairy-markets-farmers-weekly.md) | -0.7% | -7.0% |
| MILK | 2018-01-03 | [Milk price forecast turns a corner](https://feedsoft.ai/events/5206-milk-price-forecast-turns-a-corner.md) | -10.5% | -13.1% |

## Sources

- nzherald.co.nz: https://www.nzherald.co.nz/business/companies/agribusiness/milk-price-surges-to-highest-point-in-2-years/7PSIP3ENWEK5W52JJVJLZ2A2LY/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.