Commodity milk value
Spot CMV – 23 November 2020
23 November 2020
The Australian spot commodity milk value decreased this week, with mixed trends in commodity prices and a stronger Australian dollar.
In spot quotes from Australasian exporters, cheddar prices were US$30/t lower from the prior week at US$3,860/t, reflecting the direction at last week’s GDT event. SMP quotes were US$30/t stronger at US$2,820/t. WMP quotes were US$20/t higher from the previous week to US$3,050/t. Butter quotes were unchanged at US$3,880/t.
The Australian dollar rose against the US dollar, ending the week up at US73c, near yearly highs, reflecting a weakness in the greenback boosted by political uncertainty and record high COVID cases.
The combined impact of these factors pruned 6 cents from the commodity milk value for southern Australian dairy manufacturers at $5.35/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.