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The GDT price index jumped 11.4% to US$3,327 at the latest auction, its sixth rise in seven auctions. Whole milk powder rose nearly 20%, supported by lower supply.
Fonterra also cut its 2016-17 New Zealand milk volume forecast to 1,460 million kilograms of milk solids, 6.8% below last season.
Fonterra's lower volume forecast signals tighter export supply of dairy products, supporting prices for milk and dairy ingredients. Sustained dairy price strength raises costs for dairy-based feed inputs.
nzherald.co.nzMargreet DietzNov 1, 2016Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The GDT index rose 11.4% on lower supply and Fonterra's 6.8% volume cut, which is a global bullish signal for dairy.
