19 March 2018
The Australian dairy export index recovered this week, solely the result of a weaker Australian dollar which fell to a 12-week low.
In average spot quotes from Australasian exporters, cheddar prices fell US$30/t to US$3,750/t. SMP was again steady at US$1,930/t for the fourth consecutive week. WMP and butter prices were also unchanged from the prior week at US$3,200/t and US$5,300/t respectively.
The Australian dollar ended the week lower at US$0.7714, erasing earlier gains on remarks from US President Drumpf’s new chief economic adviser Larry Kudlow that he prefers a strong greenback telling CNBC viewers he “would buy King Dollar and sell gold.”
These factors combined to add 2.4 points to the index, which now stands at 185.0 – its highest mark in 15 weeks. The commodity milk value for Australian dairy manufacturers increased 10c/kgMS to end at $5.13kgMS.
Note: – The index is an indicator of spot trends in gross export returns to the Australian dairy industry based on quoted Australasian dairy commodity export spot prices, movements in currency and the mix of total milk usage in product exports by the Australian industry.
This index was set at 100 on 1 January 2000.
The commodity milk vale (CMV) is an estimate of milk value based on spot prices for key commodities and the average industry product mix, net of costs. Between 2011/12 and 2016/17 the CMV has averaged over 80% of final farmgate returns – ranging between 70% and 95% of the final average price paid by manufacturers in southern Australia. For more information on the CMV calculation please visit http://www.freshagenda.com.au/analysis/global-dairy-directions/commodity-milk-value/