Dairy prices continued their march higher at this morning's Global Dairy Trade auction, the GDT price index jumping 4.1 per cent from the last auction in mid-January. 

The price of whole milk powder - which has the biggest influence over Fonterra's farmgate milk price - gained 5.8 per cent to US$4324 a tonne, revisiting levels not seen since March last year. 

There were price increases across the board. 

The price of skim milk powder - another key driver of the milk price - rose by 2.1 per cent to US$4051 a tonne. 

Butter milk powder prices shot up 9.7 per cent to US$4009 a tonne, butter by 3.3 per cent to US$6395 a tonne, and anhydrous milk fat rose 1.4 per cent to US$6800 a tonne. 

Cheddar prices rose by 2.4 per cent to US$5684 a tonne. 

The average price paid at the auction was US$4630 a tonne. 

NZX dairy analyst Stuart Davison said North Asian buyers were again dominant, highlighting that there is no sign of demand from that part of the world easing in the short term. 

"North Asian buyers are more than willing to chase prices higher, to secure the product they need, a very common outcome on the GDT platform," he said. 

"The Asian market as a whole, both South East Asia and North Asia, remains the dairy market powerhouse currently, and this auction confirms that both regions have demands that still need filling, even at current prices," Davison said in a commentary. 

Today's auction maintains upward pressure on Fonterra's farmgate milk price forecast. 

Late last month, Fonterra lifted its 2021/22 forecast milk price range to $8.90 - $9.50 per kg, up from $8.40 - $9.00 per kg of milksolids. 

This increases the midpoint of the range, which farmers are paid off, by 50 cents to $9.20 a kg. 

The new forecast would contribute $13.8 billion to the New Zealand economy this season if it comes to pass.