Global dairy prices dropped slightly overnight but the flagship whole milk powder price managed a slight increase.

The GDT auction last week was close to expectations, and even included a slightly positive surprise with a 5.5% jump in skim milk powder prices, says BNZ senior economist Doug Steel.

The whole milk powder price slipped for the first time this year at the overnight Global Dairy Trade (GDT) auction.

Global dairy prices have broken their golden run of 2018. However, whole milk powder prices have lifted for the fourth consecutive time this year.

Westpac senior analyst Anne Boniface says fears of tighter international supplies, particularly for whole milk powder, helped dairy prices squeeze higher in the first few Global Dairy Trade auctions of 2018. 

Dairy prices have risen for the third consecutive auction this year.

A “hint of conservativeness” can be detected in Fonterra’s updated forecast on the farmgate milk price last week, says ASB’s senior rural economist Nathan Penny.

The Global Dairy Trade (GDT) auction has broken its run of consecutive price drops.

Dairy prices have fallen for the fourth straight auction.

Fonterra's forecast milk price of $6.75/kgMS is looking shaky, bank economists agree.