There has been another big increase in prices at the latest Global Dairy Trade auction, with prices rising 10.9 percent overall.
Whole milk powder, which is a crucial product for Fonterra, rose 12 percent to US$2,078 (NZ$3,265) a tonne.
But the improved prices came after Fonterra cut the amount of product it is selling at the auction. The cooperative will still need to find buyers for that product.
Another concern for farmers and the wider New Zealand economy is fresh data out overnight showing the Chinese economy is slowing.
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