Monday, 28 November 2016 17:54

Mixed signals drive index lower

Written by  Jo Bills, Fresh Agenda

THE Australian dairy export index retreated slightly this week, down 0.7% due to a higher Australian dollar and despite stronger butter prices.

In quotes from Australasian exporters, butter prices rose US$100/t to US$4,300/t. Milk powder prices were unchanged, with SMP at US$2,650/t after last week’s surge, while WMP stayed at US$3,500/t.

Markets are contemplating conflicting signals, with lower milk supply in all major exporting regions but the US. On the other hand, the European Commission’s decision to go ahead with a tender round to test buyers’ appetite for SMP intervention stocks much earlier than expected appears to have buyers more relaxed about supply. Cheddar prices also stalled at US$3,700/t this week.

The Australian dollar ended the week higher at US$0.743, boosted by stronger bulk commodity prices, especially the price of iron ore which is Australia’s largest export items. The US dollar rally also took a break as Americans celebrated Thanksgiving.

These factors combined to prune 1.5 points from the index, which now stands at 205.2.

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.

More like this

Yoghurt's rainbow of flavours

I’m old enough to remember a time when there seemed to be about three flavours of yoghurt: vanilla, strawberry and, if you want to be really fancy, tropical.

Poor policy delivers a butter spike

It’s strange times for the global dairy market, and one of the crazier things we’re seeing is how the butterfat market has performed lately. 

How clean is your calf shed?

A critical way to reduce the spread of disease from one season to the next is by removal of soiled bedding and thorough cleaning of the calf shed. Ideally this should be done as soon as possible after the last calf leaves the shed.

More from this category

Fonterra taps into Chinese ‘consuming class’

THE SCENE: downtown Beijing.

Beside a bus stop in a cluster of ordinary local shops is a bakery called Wei Duo Mei, open 6.30am to 9.30pm, seven days a week.

To Australians a bakery is no big deal, but to China’s rapidly increasing ‘consuming class’, or new wealthy, the bakery is something special, an opportunity Fonterra has been quick to exploit.

New Fonterra China farm taking shape

 

EARTHWORKS HAVE started on Fonterra’s new $42 million dairy farm in Yutian County near Beijing.

Project manager Kim Mashlan told Dairy News Australia the perimeter fence is complete and other work is in progress. But during the three months of winter progress will be limited.

A2 builds Sydney plant

A2 Corporation plans to build a $10 million processing plant in Australia after receiving $4 million via a share placement.

Domestic consumption rises

The past decade has seen many changes in the Australian dairy industry and none more significant than in the way milk is used in the various states of Australia.

Making money from acid whey waste

BOOSTING VALUE from whey could earn Australia’s dairy industry millions and improve sustainability, says the winner of a big industry prize. 

The recent move by Coles to slash private label milk prices to $1 per litre has caused a huge stir in dairy circles during the past month.

AS THE current season draws to a close, many farmers in southern Australia will be turning their thoughts toward the 2011/12 season and the opening price announcement.

ONE OF Australia's oldest and largest dairy companies is tipping increased financial strength for shareholders and more development opportunities after it is publicly listed on the Australian Stock Exchange in July.

AS ANOTHER season draws to a close; milk prices come 'top of mind' as farmers assess how they've ended the year and put together operating plans and budgets for next season.

Exasperation at years of low milk prices drove South Australian dairy farmers Barry Clarke and Geoff Hutchinson to take charge of their own destiny.

Leave a comment

Make sure you enter the (*) required information where indicated.\nBasic HTML code is allowed.

» Get social

When butter and chocolate collide

TWO New Zealand companies Lewis Road Creamery and Whittakers have teamed up to deliver what must be every dairy lover’s dream: chocolate butter.

Milking it - Ice cream for dogs

EFFORTS to extend the market for dairy know no bounds, with an American company The Bear and The Rat, creating a yoghurt-based ice cream for dogs.