International prices for whole milk powder have risen for the first time in nine months. However, Fonterra expects them to remain volatile.
Prices in an internet auction ranged from just over $US2100 per metric tonne to almost $US2400 per tonne.
That's an increase of 16.6% on a month ago and compares to a decline of 8.2% at February's auction and a drop of 9.3% in January.
It's the first time the average price has risen since Fonterra began holding internet auctions in July last year.
Global trade managing director Kelvin Wickham says the prices reflect what customers are prepared to pay.
However, Fonterra says price volatility is likely to remain given the market uncertainty.