The co-operative said that, when combined with the previously announced estimated dividend range of 25-35 cents per share, its cash payout would be $4.95 to $5.05 for the season.
AgriHQ analyst Susan Kilsby said it was too early to say whether the positive price trend would continue into 2015.
"Fonterra factored in a steady increase in dairy commodity prices into its $4.70/kg milk price, therefore prices need to keep moving higher if this price is to be achieved," she said in a market commentary.
Much of Fonterra's thinking centres on wholemilk prices recovering at some point to their long-run average of around US$3500 a tonne.
Falling oil prices, geopolitical uncertainty in Russia and Ukraine, and subdued demand from China have all contributed to sharply weaker prices this year.
Skim milk powder - another major product for New Zealand producers - dropped in price by 3.2 per cent at this morning's sale but other products fared better, with anhydrous milk fat gaining 10.8 per cent and butter rising by 10.4 per cent.
Butter milk prices dropped by 9.5 per cent and cheddar fell by 0.6 per cent. Rennet casein gained in price by 4.5 per cent.
