30 March 2020
The Australian dairy export index declined this week, the result of a stronger Australian dollar and mixed trends in commodity prices.
In spot quotes from Australasian exporters, WMP fell US$50/t from the prior week to US$2,800/t. SMP prices were also weaker – down US$70/t from the previous week to US$2,770/t. Cheddar was unchanged at US$4,400/t. Butter quotes increased US$40/t from the prior week to US$4,250/t.
The Australian dollar gained nearly 4 cents against the US dollar, ending the week at US$0.6162 boosted by hopes offered by government monetary and fiscal rescue packages.
The combined impact of these factors pruned the index by 17.7 points to 259.3.
The weekly spot commodity milk value (CMV) for southern Australian dairy manufacturers fell 74 cents to $8.09kgMS.
It should be noted that the Oceania spot prices quoted above have yet to respond to wider global trends. If current C2 futures are substituted for WMP, SMP and butter the C2 price from the most recent GDT event are substituted, the CMV is reduced to $7.54kgMS. The critical price for the Australian dairy industry is cheddar, if quotes were reduced to US$3,500/t the CMV would be $6.36kgMS. While we will continue the Oceania series we have tracked for many years, but would urge some caution in interpreting the numbers under the current circumstances.
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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