Prices in the latest Global Dairy Trade auction have rebounded, after a 2.0 per cent dip earlier this month.
In the first auction post news of two potentially viable vaccines, prices rose 1.8 per cent across the board to an average US$3,157/tonne.
Whole Milk Powder - which has the biggest bearing on Fonterra's Farmgate milk price - followed suit with a 1.8 per cent increase also, to an average US$3,037/tonne.
Skim Milk Powder regained a little headway after a 4.4 per cent fall earlier this month, to lift 2.5 per cent, averaging US$2,799/tonne.
The biggest rise came from Anhydrous Milk Fat, with a 4.4 per cent jump to average US$4,175/tonne, while butter rose 0.4 per cent to US$3,838/tonne.
Going against the grain, but with very little product offered, Lactose fell 18.8 per cent to US$887/tonne and cheddar dropped 3.5 per cent to an average US$3,641/tonne.
A total of 35,303MT of product was sold, attracting 110 bidders over 16 rounds.
In a market update on October 15, Fonterra increased the midpoint of its forecast farmgate milk price for the 2020/21 season by 40 cents to $6.80, but retained its $1 range of between $6.30 and $7.30.
Fonterra chief executive Miles Hurrell said the co-op was "very pleased" with the result.
"It picks up the loses that we incurred in the last event," he told The Country's Jamie Mackay.
According to Hurrell, the news of a potential Covid-19 vaccine hadn't had any effect on the positive result. He preferred to put it down to the strengthening of China's economy.
"It was quite heavily dominated by China last night. Which I think is a reflection of how China is well and truly through Covid from an economic perspective ... where the rest of the world is still sluggish and in lockdown."
The sectors most affected by Northern Hemisphere lockdowns were butter and cheese due to a dip in food services or "out of home consumption," Hurrell said.
However, in the US, milk had been supported by government aid and the recent election, which had "taken a bit of heat out of that market for them," Hurrell said.
"We are seeing a lot of milk out of North America, we need to watch that very closely, considering some of those markets, those food outlets are still closed – that's probably the one to watch for me I think."
Also in today's interview: Hurrell talked about how Kiwi dairy farmers were "generally happy" with the recent rainfall and how he was looking forward to working with new Fonterra chairman Peter McBride.