Pam has saved the season on many North Island dairy farms but the cyclone’s soak failed to reach the south where some areas are still desperately dry, despite dribs and drabs of rain in recent weeks.

The GlobalDairyTrade (GDT) auction slumped overnight, after six straight increases.

In the last couple of weeks we have seen a welcome recovery in the Global Dairy Trade price index, albeit on reduced volumes for this time of year.

After an uninspiring ten months, the start of 2015 has understandably created a great deal more optimism on the sellers’ side of global dairy markets. 

All eye are on Fonterra this week to see if it lifts its $4.70/kgMS forecast after the Global Dairy Trade (GDT) Index price last week surged 10.1%.

The Global Dairy Trade will still have “to travel a lot of distance” to sustain Fonterra’s current farmgate milk price of $4.70/kgMS, Fonterra’s chairman John Wilson says.

Last night's GlobalDairyTrade auction saw the fifth consecutive gain for dairy prices since December.

The Global Dairy Trade price jump of 9.4% last week was at the top end or bigger than predictions by economists and part of a continued upward swing.

Dairy prices rose again overnight with an increase of 9.4% in the Global Dairy Trade auction.

Dairy farmers are still wary despite three successive lifts in global dairy auction prices.