Dairy auction prices started the new season in a positive way as the overall 3.4% average price rise was the second-highest of the year.
Four of the last five auctions have now recorded gains.
The price lift was broad-based and five out of the seven main products being monitored recorded rises.
Butter and skim milk powders led the increase, jumping 14.2% and 12.1% respectively.
Cheddar prices were also strong, up 7.8%.
However, whole milk powder prices bucked the trend, falling 1.7%.
ASB rural economist Nathan Penny said the whole milk powder prices fell on news New Zealand production had been stronger than expected in recent months.
Production in the season to April was 1.7% down compared to the same 11 months last season.
With just May milk collection data to go for the last season, it appeared the season was going to end about 2% lower after having threatened to be 3% or more down at one stage.
Skim milk powder prices spiked as the large gap between New Zealand prices and European prices closed, he said.
"Interestingly, the futures market had signalled this spike prior to the previous auction about two weeks ago. As such, there remains a disconnect between the physical market and the thinner skim milk powder market.''
Mr Penny continued to expect global prices to lift during the rest of the season and for the milk price to reach $6 per kg of milksolids by the end of the season.