AusExport Index

15 October 2018

The Australian dairy export index lost a little ground this week, solely the result of a stronger Australian dollar while powder prices moved in opposite directions.

In average spot quotes from Australasian exporters, butter and cheddar prices were steady at US$4,250/t and US$3,700/t respectively, while SMP improved US$20/t to US$2,020/t and WMP lost another US$50/t to US$2,725/t.

The Australian dollar ended the week higher at US$0.7118 after a turbulent week in the financial world with equity markets losing significant value driven by fears in the US that interest rates will continue rising to head off the inflationary risks from a stronger US economy. The escalating trade tensions between the US and China added to the gloom. The resulting forces weakened the US dollar.

The small net effect of commodity prices and stronger shaved 1.4 points off the index, to push it down to 190.7. The weekly spot commodity milk value for southern Australian dairy manufacturers eased 7 cents to $5.29/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.

Freshagenda’s Australian Dairy Export Index is an indicator of spot trends in gross export returns to the Australian dairy industry calculated by Freshagenda

The Australian Dairy Export Index is an indicator of average spot quotes from Australian exporters and in one of many ways specialist food industry consultants Freshagenda monitor developments in Australia and global dairy markets.

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