26 February 2018
The Australian dairy export index rose 0.8 points this week, the result of a small rise in butter prices and a weaker Australian dollar.
In average spot quotes from Australasian exporters, butter prices rose US$70/t to US$5,370/t – the highest mark since 27 November 2017. SMP and WMP prices were weaker however – down US$70/t and US$25/t at US$1,930/t and US$3,225/t respectively after the slide in last week’s GDT results. Cheddar prices were unchanged for the third consecutive week at US$3,700/t.
The Australian dollar ended the week weaker at US$0.7845, driven by a rebound of the US stocks market on Friday in addition to expectations of a steady US economic growth by the Federal Reserve despite inflation concerns.
These factors combined to add 0.8 points to the index, which now stands at 189.5. The weekly commodity milk value for Australian dairy manufacturers once again poked it’s nose above $5/kgMS for only the 2nd time this year to finish at $5.01/kgMS.
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.