International dairy prices have risen for the fourth time in a row.
Fonterra's Global Trade Weighted Index increased by nearly 2.5% to an average winning price of $US3249 per tonne.
Whole milk and skim milk powder rose, offseting falls in anhydrous milk fat, butter milk powder and milk protein concentrate.
ANZ Bank rural economist Con Williams says demand remains robust, while milk production in Europe is slowing faster than expected due to higher, drought-related grain costs.
Mr Williams says while dairy prices are rising, returns to farmers when converted back into New Zealand dollars will be crimped by the higher currency.
The index is still about a third below its near four-year peak in March last year.
In August, dairy cooperative Fonterra cut its forecast payout to farmers by 30 cents to $5.65-$5.75 a kilo of milk solids for the current season, blaming the high New Zealand dollar.
