Dairy prices have risen slightly at Fonterra's GlobalDairyTrade auction, increasing for the first time in five auctions amid expectations dry weather in New Zealand might ease milk production.
The GDT price index grew 0.4 per cent overnight from the previous auction two weeks ago to reach an average price of $US3091 ($4493).
Some 29,514 tonnes of product was sold, down from 35,042 tonnes two weeks ago.
Whole milk powder gained 1.7 per cent to US$2830 a tonne.
"The lower volume on offer appears to have provided some support as nearly all of this product was sold," AgriHQ dairy analyst Amy Castleton said.
"Buyers may also be concerned about the dry conditions in New Zealand.
"New Zealand milk production has coped okay with adverse weather conditions to date, but continued dry conditions are likely to affect milk production through the summer months."
At the latest auction, skim milk powder climbed 4.7 per cent to US$1774 a tonne, while butter milk powder gained 4.3 per cent to US$1957 a tonne.
Whole milk powder advanced 1.7 per cent to US$2830 a tonne.
Meanwhile, butter sank 11.1 per cent to US$4575.
"Butter was last at this price level in the early months of this year," Ms Castleton said.
"Butter prices have now declined for five consecutive events, and have lost 25 per cent of their value since September."
Cheddar fell 3.9 per cent to US$3696 a tonne, while anhydrous milk fat slipped 0.6 per cent to US$6836.
There were 123 winning bidders out of 160 participating at the 13-round auction. The number of qualified bidders rose to 563, up from 557 at the previous auction.