Tuesday, 15 November 2016 11:32

Export index hits 20 month high

Written by  Jo Bills, Fresh Agenda
(Heather Harvey via Flickr) (Heather Harvey via Flickr)

THE Australian dairy export index rose 1.6% this week, reaching its highest point since March 2015, but it was all due to a weaker Australian dollar, as commodity prices were unchanged.

In spot quotes from Australasian exporters, cheddar spent its third consecutive week at US$3,450/t, while butter stayed at US$4,200/t. After last week’s strong increase, WMP steadied atUS$3,350/t, while SMP, which has mostly been quoted in a tight band between US$2,300/t and US$2,400/t since mid-September was at the top end of that range this week. After some GDT-induced excitement, prices appear to be in a holding pattern in the lead up to this week’s event, and as markets await for more tangible information regarding the anticipated fall in New Zealand milk output.

The Australian dollar ended the week lower at US$0.755, its weakest point in 8 weeks with the greenback strengthening in the wake of last week’s presidential election. Another factor contributing to the tumble of the local currency were higher European and US bond yields in effect reducing the relative attractiveness of the Aussie.

These factors combined to add 3 points to the index, which now stands at 189.4.

Note: - The index is an indicator of spot trends in gross export returns to the Australian dairy industry based on quoted Australasian dairy commodity export spot prices, movements in currency and the mix of total milk usage in product exports by the Australian industry.

This index was set at 100 on 1 January 2000.

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