Dairy product prices have risen for just the second time this year at the GlobalDairyTrade auction with the price index gaining 2.1 percent.
The average price was US$2,188 ($NZ3,216), with key export commodity whole milk powder rising 1.5 percent at the seventh auction of the year.
It's only the second price rise in the past seven auctions. Prices fell 2.9 percent at the last auction.
"It was a pleasant surprise to see some prices lift on the GDT auction overnight as there is not a lot of positivity in the market at present," AgriHQ dairy analyst Susan Kilsby said.
"In Europe product continues to flood into the government-backed intervention programs as milk production continues to expand."
Following the GDT auction, the AgriHQ 2015-16 Farmgate Milk Price fell 8 cents to $4.06 per kilogram milk solids. This compares to Fonterra's current forecast of $3.90/kgMS.
The fall in the AgriHQ 2015-16 milk price forecast was primarily driven by prices easing in the NZX Dairy Futures market over the past three weeks, according to Ms Kilsby.
"The majority of Europe's extra milk is being made into skim milk powder and butter which will keep prices for these commodities subdued for some time," Ms Kilsby noted.
"However the price of whole milk powder and anhydrous milk fat is less influenced by the European market. A decrease in New Zealand's milk supply will provide some support to the price of these two commodities."
The New Zealand dollar last traded at 68.02 US cents at about 11:40am in New York, compared with 68.34 US cents at 5pm in Wellington the previous day.