THE price of whole milk powder rose 0.8 per cent on Fonterra's online auction system last month.
The 22,000 tonnes of WMP sold on globalDairyTrade averaged $US3281 a tonne, up from the average of $US3256 a tonne for 21,000 tonnes in January.
Dairy Australia trade and strategy industry analyst, Norman Repacholi, said the result was a move in the right direction.
"Incremental adjustments are good. Buyers can adjust to the current pricing level and farmers are comfortable because there is not so much volatility as there has been in the past," he said.
"It's good, in a period of uncertainty and volatility, that it's experiencing just a little bit of stability for the time being."
The largest volume of milk powder - 10,000 tonnes - was offered in the first contract period: May this year.
The average price for this contract was US$3291 a tonne, up 2.8 per cent from January.
Up to 6000 tonnes of WMP was offered in the second contract period - June to August - with the average price increasing 0.9 per cent to $US3337 a tonne.
The price for contract period three - September to November- was $US3204 a tonne, down 2.5 per cent.
Skim milk powder was offered for the first time last month and 7500 tonnes sold for an average $US2927 a tonne.
"There was a small volume offered. Even at that small volume (it's) a positive result in light of the low offer price from the US," he said. "It still suggests that there is a very clear market for Oceania (Australia and New Zealand) products despite the US selling at a discount (for their non-fat dry milk)."
The average price for anhydrous milk fat was US$3959 a tonne, $US224 a tonne or 5.4 per cent less than January. Mr Repacholi said the drop represented a "rebalancing" of prices
globalDairyTrade Manager Paul Grave was pleased with the auction result and said it reflected a relatively stable market over the past four weeks.
