International milk prices have risen but volumes fell in Fonterra's fortnightly auction.
The Global Dairy Trade Index rose 1.4%, with an average selling price of $US5025 per tonne.
The auction sold 41,024 tonnes, down 11.6% from the previous auction.
Benchmark wholemilk powder prices rose 0.1%, while butter and cheddar each surged more than 10%.
ASB economist Chris Tennent-Brown says the latest auction was encouraging and there is solid demand.
He says there is likely to be a seasonal aspect to the fact that volumes were down compared to the previous auction and the production statistics were very encouraging for the overall volumes in the tail end of the season.
Mr Tennent-Brown says it's still in the early stages but the weather is favourable for production continuing in contrast to last year when the effects of a drought were starting to be felt at this time.