Dairy product prices have unexpectedly risen at Fonterra's GlobalDairyTrade auction, stemming two straight declines and offering optimism that the market can deal with increased supply.
The GDT price index rose 1.7 per cent from the previous auction two weeks ago and the average price was up to $US3101 ($NZ4396) per tonne.
Some 22,498 tonnes of product was sold, up from 22,328 at the previous auction.
Whole milk powder gained 2.9 per cent to $US2855 a tonne.
"For the market to absorb the extra volume available and to pay a higher price for it is an outstanding result and a complete turnaround from a fortnight ago," AgriHQ dairy analyst Susan Kilsby said in a note.