16 July 2018
The Australian dairy export index declined this week, the result of weaker commodity prices and despite a lower Australian dollar.
In average spot quotes from Australasian exporters, WMP prices fell US$25/t from the prior week to US$2,900/t. Following three consecutive weeks at US$3,900/t, cheddar prices dropped US$50/t to US$3,850/t. Butter and SMP prices were unchanged from the previous week at US$5,500/t and US$2,000/t respectively.
The Australian dollar ended the week weaker at US$0.7388, reflecting renewed concerns about the strength of the Chinese economy following the release of weaker-than-expected monetary growth data for June.
These factors combined to prune 0.5 points from the index, which now stands at 196.2 – the lowest in 11 weeks. The weekly spot commodity milk value for southern Australian dairy manufacturers fell two cents to $5.53/kgMS.
Take 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 value (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 this page.