Fonterra views as positive the almost negligible movement in whole milk prices on its globalDairyTrade internet auction on Tuesday night.
The average price for whole milk powder rose 0.8%, or $NZ36 a tonne, compared with February's event, with an average price of $4755 a tonne.
Prices ranged from $4608 to $4920.
Anhydrous Milk Fat (AMF) prices eased 5.4% a tonne, or $324, while the average price for the first offering of skim milk powder was $4242.
This week's price gain ends two consecutive months in which prices fell, but in the previous five months, prices almost doubled.
In February, whole milk prices fell 1.6%, following a 7% drop in January.
Fonterra's manager of globalDairyTrade, Paul Grave, said stable prices in the March event were a positive sign that the market had found a level.
"The movement was within the expected range and indicates the market is in reasonable balance at the moment."
AMF met softer demand, but Mr Grave said it only made up 3000 tonnes of the 32,000 tonnes of product on offer.
"Overall, there was positive sentiment for whole milk powder and skim milk powder," he said in an interview.
Given this was the first sale of skim milk powder, Mr Grave expected the market would take some time to settle.
Looking ahead, he said there was some uncertainty how supply and demand would influence the market, as buyers focused on ensuring they secured short and medium-term requirements.
Another unknown was the impact of a weak Euro currency, relative to the United States dollar, which he said made European dairy exports more price competitive.
The next auction will be held on April 6.
