Prices have risen slightly in the global dairy auction overnight.
The average price rose 0.6 percent to $US3517 a tonne.
Global dairy prices have risen slightly, following a drop earlier in the month. Photo: 123RF
The slight lift in prices overnight follows a 3.9 percent fall earlier this month, but analysts say the market is rebalancing itself.
The important whole-milk powder price fell 0.1 percent to $US3283 a tonne, which keeps prices in the break-even range for dairy farmers, who need about $US3000 a tonne to do so.
A drop in milk production in New Zealand for the first half of the season is expected to support a milk payout of about $NZ6 a kilogram of milk solids for the season.
In 2016 milk prices rose nearly 50 percent overall, driven by an almost 70 percent increase in whole milk powder prices.