16 October 2017
The Australian dairy export index lost ground this week, as commodity prices stalled and the Australian dollar strengthened against the greenback.
In average spot quotes from Australasian exporters, prices were unchanged from last week. Butter remains at US$5,850/t. SMP quotes averaged US$1,950/t, with recent statements from the EU Commission about tougher intervention rules increasing the uncertainty for manufacturers. WMP spent their third consecutive week at US$3,100/t. Cheddar prices maintained a US$4,050/t average – having traded in a tight range – between US$4,000/t and US$4,100/t since late July.
The Australian dollar ended the week over a cent higher at US$0.7883. The release of a weaker than expected US inflation figures weighing on the dollar. These factors combined to trim the index by 3 points to 200.5.
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.