Commodity milk value
Spot CMV – 17 May 2021
17 May 2021
The Australian spot commodity milk value increased this week, alone the result of a weaker Australian dollar.
In spot quotes from Australasian exporters, Cheddar, SMP, butter, WMP were unchanged at US$4,450/t, US$3,500/t, US$5,150/t and US$4,200/t respectively.
The Australian dollar fell against the US dollar, ending the week at US77.8c, as prices of base metals tanked and the spectre of inflation increased last week with CPI numbers.
The combined impact of these factors lifted the commodity milk value for southern Australian dairy manufacturers to by 9 cents to $6.70/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.