Commodity milk value

 

Spot CMV – 12 April 2021

12 April 2021

The Australian spot commodity milk value increased this week, the result of generally higher commodity prices and despite a stronger Australian dollar.

In spot quotes from Australasian exporters, butter rose US$110/t from the previous week to US$5,790/t. SMP was US$10/t higher to US$3,410/t. WMP also increased, up US$50/t from the previous week to US$4,100/t. Cheddar was unchanged at US$4,500/t.

The Australian dollar increased against the US dollar, ending the week at US76.c, with local macroeconomic data continuing to signal economic expansion despite the protracted inoculation program now facing Australia, but also limited demand for US dollars and despite weakening commodity prices.

The combined impact of these factors lifted the commodity milk value for southern Australian dairy manufacturers by 3 cents to $7.07/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.