Oct 9 (Reuters) - New Zealand's Fonterra Co-Operative Group on Monday raised its farmgate milk price forecast for the 2023-24 season, first time after cutting the forecast range twice earlier.

The world's largest dairy exporter now expects to pay NZ$6.50 to NZ$8.00 per kilogram of milk solid (kgMS) for the 2023-24 season, up from its earlier forecast of NZ$6.00 to NZ$7.50 per kgMS.

Global Dairy Trade (GDT) prices surged while its sales volumes dropped, according to September's second GDT auction.

The company has seen a rise in demand after a recent gain in GDT prices but flagged worries over China demand prospects.

“For other key regions, customers remain relatively cautious in terms of their forward purchases," said CEO Miles Hurrell.

The company expects New Zealand milk collections for the 2023-24 season to be marginally lower compared to the last season while adding that total milk growth among key exporters would be below average for fiscal 2024.

(Reporting by Manvi Pant in Bengaluru; Editing by Lisa Shumaker)