NZX dairy futures have rallied sharply, suggesting next week's GlobalDairyTrade (GDT) auction will show a big rise.
There were big moves in NZX whole milk powder futures overnight, with the August contract gaining US$5 to US$2245 a tonne, September rising US$90 to US$2530 and the October contract rising by US$120 to US$2650.
Further out, November was up US$85 to US$2680, December was up US$100 at US$2700 and January was up US$90 at US$2710.
The August to December "contango" - the difference between the short dated contract and the longer dated contract - has widened US$100 out to US$455 a tonne.
"There are large premiums being built into the futures over the last GDT suggesting another large rise is on the cards," Nigel Brunel, director financial markets at OM Financial, said.