# Biggest drop in dairy prices in 18 months | RNZ

> The Global Dairy Trade auction average fell 5% to US$3,232 per tonne, the third consecutive decline and the largest drop in nearly 18 months. Whole milk powder fell 7.3% and auction volumes rose nearly 23% as the new season began.

- Date: 2018-07-03 · published 2018-07-03T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/4976-biggest-drop-in-dairy-prices-in-18-months-rnz
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Falling milk powder prices and higher offered volumes at the start of the new season point to weaker global dairy pricing. This lowers farmgate milk returns in exporting regions.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2018-07-04 | 1 | -5.8% | -8.0 | Largest GDT drop in 18 months (WMP -7.3%) on July 3 signaled weak global demand and pressured US dairy futures sentiment. |
| MILK | 2018-07-09 | 5 | -7.0% | -3.2 | The GDT auction fell 5% with whole milk powder down 7.3% on higher volumes, weighing on global dairy price expectations and US futures. |

## Sources

- rnz.co.nz: https://www.rnz.co.nz/news/business/361021/biggest-drop-in-dairy-prices-in-18-months

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