Predictions global dairy prices have passed their lowest point appear to be coming true.
For the second consecutive month, prices firmed on Fonterra's internet-based globalDairyTrade selling system, with prices at the latest event on Wednesday night rising 3.5%, compared with those in March.
Fonterra's managing director of global trade, Kelvin Wickham, said demand was increasing, which was a sign that supply and demand fundamentals were coming back in to balance.
The dairy company has been forecasting for some time that demand would improve, reversing some recent savage declines in international dairy prices.
This has been most obvious in its globalDairyTrade, with prices falling 14% last year between November and December.
Last July, the average price of whole milk powder was $NZ7600 ($US4500) a tonne.
On Wednesday night, the average price for whole milk powder was $NZ4382 a tonne, with prices ranging from $NZ4137 to $NZ4705.
"It's encouraging to see some stability in the market, and while some economic risks remain, we are positive about the medium-term outlook," Mr Wickham said.
The news would also be welcomed by dairy farmers as it reinforced the likelihood of Fonterra meeting its forecast payout for this season of $5.10 a kg of milk solids.
The next globalDairyTrade event would be held on May 5.
The ANZ's index of international commodity prices recorded its first monthly rise since last July.
A downward spiral in prices of key commodity exports was arrested in March, the ANZ said.
Its commodity price index recorded a 1% rise from the previous month, but was down 31.4% on a year ago.
Beef and lamb prices recorded the largest percentage rise in the month, up 4.2% and 3.9% respectively.
Wool prices rose 3.1% and dairy prices rose 2.8%.
Among the commodities to record price drops were logs, down 12.1%, lumber 6.3%, seafood 3.5%, skins 3.2% and venison 1.7%.
The New Zealand dollar rose against all of the country's major trading partners last month.
"At a time when the domestic economy is still very weak, a higher New Zealand dollar is likely to delay any support the export sector is likely to provide," the ANZ said.
