# Dairy prices surge, with whole milk powder up 20 per cent, at latest auction - NZ Herald

> 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.

- Date: 2016-11-01 · published 2016-11-01T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/8320-dairy-prices-surge-with-whole-milk-powder-up-20-per-cent-at-latest-auction-nz
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

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.

## 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 | The GDT index rose 11.4% on lower supply and Fonterra's 6.8% volume cut, which is a global bullish signal for dairy. |

## Sources

- nzherald.co.nz: https://www.nzherald.co.nz/business/companies/agribusiness/dairy-prices-surge-with-whole-milk-powder-up-20-per-cent-at-latest-auction/OZ6EDSV3S7EOTQS3Z4TM5PWWPI/

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