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Global dairy prices have made further gains at the latest overnight auction – adding to confidence about earnings at the farm gate this year. Key export commodity whole milk powder rose 2.5% to US$3706 per metric tonne, the fourth consecutive increase after weakness at the end of 2025. Most other commodities on offer last night recorded price gains, aside from cheddar cheese, which fell 1%. Notably, butter increased by just over 10%. Before Christmas, dairy giant Fonterra updated its forecast Farmgate Milk Price for the 2025/26 season. The co-op adjusted the forecast range from $9-$10 per kg of milk solids to $8.50-$9.50. At the time, chief executive Miles Hurrell said stronger overseas milk production put downward pressure on global commodity prices. Meanwhile, Fonterra is due to hold a special shareholder meeting tomorrow to vote on the capital return from the sale of Mainland Group to Lactalis. The capital return requires at least 75% approval of the votes cast.