Commodity milk value
Spot CMV – 15 June 2021
The Australian spot commodity milk value increased this week, the result of a lower Australian dollar and despite weaker SMP commodity prices.
In spot quotes from Australasian exporters, SMP prices fell US$20/t from the prior week to US$3,480/t. Cheddar, butter and SMP were unchanged at US$4,450/t, US$4,800/t and US$3,500/t respectively.
The Australian dollar was down, ending the week at US77.1c, reflecting weaker commodity prices and technically bearish indicators against the US dollar.
The combined impact of these factors lifted the commodity milk value for southern Australian dairy manufacturers by 3 cents to $6.72/kgms.
The spot commodity milk value (CMV) is updated weekly as an estimate of milk value based on weekly spot prices for key commodities and the average industry product mix, converted to Australian dollar, net of costs.
Between 2011/12 and 2018/19 the CMV has averaged over 80% of final farmgate returns – ranging between 70% and 95% of the final average price paid by manufacturers in southern Australia. For more information on the CMV calculation please visit this page.