# Drop in global dairy prices | RNZ

> The Global Dairy Trade auction index fell 3% to $US2,880 per tonne, its first drop since July after a series of strong gains. Whole milk powder fell nearly 4% to $US2,681. Fonterra said the broader trend still points to higher prices because global production is declining.

- Date: 2016-10-04 · published 2016-10-04T12:00:00.000Z
- Category: market · region Global · magnitude low
- Page: https://feedsoft.ai/events/5692-drop-in-global-dairy-prices-rnz
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

A one-off auction dip against a broader supply-driven uptrend means global dairy prices are likely to stay volatile, with limited near-term effect on feed demand.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2016-10-06 | 1 | -8.2% | -6.0 | The 3% drop in the Global Dairy Trade index on Oct 4, with whole milk powder down nearly 4%, signaled weaker global demand and pressured US dairy futures sentiment shortly before the move. |
| MILK | 2016-10-13 | 5 | -10.1% | -3.7 | A 3% drop in the GDT index (whole milk powder down ~4%) weakened global dairy price sentiment and export demand outlook, though it came before the window start. |

## Sources

- rnz.co.nz: https://www.rnz.co.nz/news/business/314894/drop-in-global-dairy-prices

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