Economists went back to the drawing board to revise up their farmgate milk price forecasts after wholemilk powder prices hit their highest point in just over two years at this morning’s GlolbalDairyTrade (GDT) auction.

The GDT price index jumped by 11.4 per cent but the price of whole milk powder – which has the greatest influence over Fonterra’s farmgate milk price – shot up by a much stronger than expected 20 per cent to US$3317/tonne.

Westpac revised up its farm gate milk price this season to $5.80 a kg from a previous forecast of $5.30 and ANZ said there were “upside risks” to forecasts into the low $6.00/kg mark.

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