25 January 2021
The Australian dairy export index increased this week, the result of higher commodity prices and despite a weaker Australian dollar.
In spot quotes from Australasian exporters, butter prices were US$230/t higher from the prior week at US$4,770/t, reflecting the result of last week’s GDT auction. SMP was also higher – up US$100/t from the previous week to US$3,100/t. Cheddar also improved, up U$80/t to US$4,130/t. WMP remained unchanged at US$3,290/t.
The Australian dollar increased a little against the US dollar, ending the week at US77.2c, reflecting better than expected local jobs data, but the bull run is likely limited due to lower Chinese iron ore import demand.
The combined impact of these factors lifted the index by 4.3 points to 210.1, a 12-week high.
The weekly spot commodity milk value (CMV) for southern Australian dairy manufacturers rose 19 cents to $5.76/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.