Rabobank is predicting a farm-gate milk price around $6.25 a kilo for the 2017-18 season, well up from last season where it was 2 dollars less, at $4.25.

Global dairy prices are now better balanced than at the start of this season.

A bank report says this was likely to flow through and create largely stable commodity pricing in the new season.

However, Rabobank dairy analyst Emma Higgins says despite the improved market balance, the possibility of further lifts to the current season milk price is limited.