Dairy prices have risen for the fourth consecutive time at Fonterra's latest bi-monthly auction.
The global dairy trade index rose 0.7% on Wednesday to an average winning price of $US3348 per tonne.
Whole milk powder prices fell again by an average of almost 2%.
However, anhydrous milkfat prices firmed by more than 1% and cheddar cheese prices picked up the most, more than 12%.
Dairy prices could plateau in the short-term because buyers have already covered their future requirements in previous auctions.
ANZ rural economist Con Williams says the auction prices were mixed with powder prices dropping, while the headline price was up, which suggests dairy prices are levelling out.
He says there has been strong buying over the last couple of months and most buyers have their short-term requirements covered for now which is probably why there has been a plateau in prices.
Mr Williams says a lot of people are talking about their order books firming up in the second quarter of 2013.