Prices of dairy products posted their third-biggest gain in about two years in the latest GlobalDairyTrade sale, led by whole and skim milk powder.
The GDT-TWI Price Index rose 7.8 per cent overnight compared to the last sale two weeks ago. In the past two years, that's only been exceeded by the June 5 result, when prices jumped 13.6 per cent, and the September 1, 2010 gain of 17 per cent.
The average winning price rose to $US3,054 ($NZ3,795) a metric tonne. Whole milk powder rose seven per cent to US$2,870 a tonne and skim milk powder gained 7.3 per cent to $3,023 a tonne.
Fonterra has said it expected global supply and demand to come more into balance in the second half of the year, arresting the slide in prices.
In the latest GDT auction, anhydrous milk fat jumped 14 per cent to US$3,173 a tonne and butter milk powder climbed 10.2 per cent to US$2,668 a tonne.
Also up were cheddar, 8.8 per cent to $US3,401 a tonne, milk protein concentrate 15.4 per cent to $US5,351 and rennet casein 4.7 per cent to $US7,100.