Monday, 09 January 2017 14:20

WMP and $A drive index lower

Written by  Steve Spencer, Fresh Agenda

THE Australian dairy export index fell at the end of the first week of 2017 after four consecutive weekly rises, due to weaker WMP prices and a stronger Australian dollar.

In spot quotes from Australasian exporters, WMP shed US$250/t from the previous week to US$3,350/t following the 7.7% retreat in the WMP index at the January 3 GDT event. SMP and Cheddar prices rose from the prior week, US$100/t each to US$2,750/t and US$3,950/t.

The Australian dollar ended the week higher at US$0.729 as a result of worse-than-expected US payrolls report for December according to ADP Research Institute, with employment falling across all goods manufacturing industries.

These factors combined to prune 0.8 points from the index, which now stands at 216.3.

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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