Dairy prices have rebounded to their highest level since March, led by skim milk powder prices.
Fonterra's global dairy trade-trade weighted index rose 4.5%in Thursday's auction with an average selling price of $US4,306 a metric tonne.
That followed a 1% fall in its previous auction, though the index has gained 10.5% this year.
Whole milk powder, which makes up the bulk of sales, fell, but prices for other products, including skim milk powder, all rose.
Last month, Fonterra raised this season's forecast payout to farmers before retentions by 10 cents to between $8.00 and $8.10 a kilogram of milk solids.
It is predicting a payout next season of between $7.15 and $7.25 a kilogram.