Dairy prices showed a slight improvement at the Global Dairy Trade auction.
Dairy cow Photo: RNZ/Susan Murray
The average price at the overnight auction climbed 1.7 percent to $US3101 a tonne.
The increase in the overnight auction follows two consecutive falls in the index.
Whole milk powder, which helps determine the payout to farmers, rose 2.9 percent to $US2855. The price of skim milk powder fell 10.1 percent to $US1948.
The results went against market expectations that both whole milk and skim milk prices would fall because higher volumes were up for sale.
Meanwhile, Fonterra's half-year results are due out this morning. Analysts say the result could be slightly weaker than last time because recent gains in milk prices make it more expensive for Fonterra to manufacture dairy products.