Commodity milk value

 

Spot CMV – 25 January 2021

25 January 2021

The Australian spot commodity milk value 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 commodity milk value for southern Australian dairy manufacturers by 19 cents at $5.76/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.