11 December 2017
The Australian dairy export index declined again this week, to its lowest mark since 17 April, the result of lower butter and cheddar prices, and despite a weaker Australian dollar which hit a six-month low.
In average spot quotes from Australasian exporters, butter prices fell US$570/t to US$4,580/t, replicating trends from last week’s GDT event. Cheddar prices were also weaker, losing US$75/t to average US$3,775/t. WMP prices rose US$50/t to US$2,850/t, reflecting stronger demand from South American buyers evident at the last GDT auction, in addition to increased fears about drying seasonal conditions affecting New Zealand milk supply. SMP prices were US$60/t higher at US$1,790/t.
The Australian dollar ended the week weaker at US$0.7504, driven by softer iron ore prices and weaker consumption data reported within the latest real economic growth figures.
These factors combined to prune 2.8 points from the index which now stands at 187.9 – its lowest mark in 34 weeks.
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.