Prices at the latest Global Dairy Trade (GDT) auction on Tuesday lifted 1.9 per cent overall to reach US$3637.
This contrasted with the auction two weeks ago when prices dipped 1.1 per cent.
The key whole milk powder (WMP) index slightly underperformed expectations, up just 0.2 per cent to US$3226.
New Zealand Federated Farmers dairy chairman Chris Lewis said the latest prices should support farmgate prices.
Open Country Dairy recently announced an opening forecast for the 2018-19 season of $6.35-65.
He predicted Fonterra, which is due to announce a forecast price later this month, of going slightly higher than OCD.
"But we don't want dairy companies to over promise and raise expectations," he said.
"It's easy to go high, but much harder to bring it down."
"While we know it's only a forecast, some people take it as gospel."
Mr Lewis said he had attended an NZ dairy awards event recently where the mood had been subdued.
"There are a lot of headlines which are causing worry and stress - talk of raising the minimum wage, tougher environmental regulations, and the threat of Mycoplasma," he said.
"There's not a lot of confidence in dairy farming, people are not expanding their business at the moment."
In other results, the anhydrous milk fat index rose 5.8 per cent, skim milk powder (SMP) was stronger than expected with a lift of 3 per cent, and butter was up 2.4 per cent.