Dairy prices have continued their recovery at the latest Fonterra GlobalDairyTrade (GDT) auction with a fourth consecutive gain.
The GDT price index rose 9.9 percent to an average price of US$2,834 - the highest point since March.
Fonterra's main commodity, whole milk powder, climbed 12.9 percent to US$2824.
The AgriHQ 2015-16 Farmgate Milk Price increased 74 cents to $5.39 per kilogram milksolids, compared with Fonterra's 2015-16 milk price forecast of $4.60/kgMS.
"The lift... is primarily driven by market expectations of further gains in dairy commodity prices through the rest of the season," AgriHQ dairy analyst Susan Kilsby said.
The NZX Dairy Derivatives market indicates whole milk powder prices will reach US$3,000 a tonne before the end of 2015 and remain above this level for the remainder of the season.
"This is good news for dairy farmers as US$3,000 a tonne is about the price required for most farms to break even," Ms Kilsby said.
The New Zealand dollar last traded at 65.37 US cents in New York, compared with 64.90 US cents at 5pm in Wellington the previous day.
The GDT price index had declined steadily for nearly six months before arresting the slide in the middle of August.
All products on offer at the latest auction rose with the exception on butter which fell 2.3 percent.
Butter milk powder and skim milk powder enjoyed double-digit growth.