The Global Dairy Trade price index was up 3.5% overnight – with at least one major bank now saying the farmgate milk price may go higher.

Federated Farmers Dairy chairman Andrew Hoggard says this morning’s strong rise in global dairy prices is a morale booster for farmers.

Global dairy prices have risen in the latest Global Dairy Trade (GDT) auction overnight.

With Australian farmers focussed on the big wet across the country’s south, let’s look at the background -- how the dairy market is behaving, and what it means for farmgate prices.

The GlobalDairyTrade Event 173 concluded with the GDT Price Index down 3% over night.

Fonterra has increased its after tax profit by 65% to $834 million for the year ended July 31, 2016.

The Global Dairy Trade Event 172 concluded with the GDT Price Index up 1.7%.

New Zealand farmer confidence in the agricultural economy has risen for the second consecutive quarter and is now at its highest level since 2013, the latest Rabobank Rural Confidence Survey has shown.

In another sign the dairy industry is rebounding, milk processors are increasing their forecast price for the season.

Global Dairy Trade Event 171 concluded overnight with the GDT price index up 7.7%