Dairy prices rose 0.4 percent in the latest Global Dairy Trade event overnight, with the average price for commodities reaching US$3159 per metric tonne (MT).
The rise is the third consecutive increase after prices dropped four times in a row.
Butter saw the biggest increase in price, up 3.3 percent to US$3678/MT, with cheddar also rising 3 percent to US$3803/MT. Whole milk powder inched up 0.3 percent to US$3037/MT.
All other commodities fell, with lactose having the biggest drop, falling 8 percent to US$1087/MT. Prices for anhydrous milk fat were down 0.5 percent to US$4110/MT and skim milk powder dropped 0.2 percent to US$2851/MT.
Although the rise was modest, the fact there have been increases in three consecutive auctions show prices are "firming up nicely", ASB economist Nat Keall said in the bank's weekly commodities report on Wednesday.
The auction comes after Fonterra last week increased its forecast milk price for the 2020/21 season.
The co-op raised the mid-point for its price range to $6.80 per kilogram of milk solids, up from $6.40 per kgMS.
The higher forecast was driven by improved demand from China, the company said.
