Australian price detached from NZ fundamentals

by | Dec 14, 2022 | Australia, Prices

Our commodity milk value (CMV) based on weekly NZX-reported spot quotes fell again last week to $7.37/kgMS and has lost 19% since the start of October as dairy product prices have retreated and the Australian dollar climbed to US$0.6792. A comparison of the effective value of commodities in the Australian market though is a different matter, as wholesale prices for cheese and butterfat have remained somewhat insulated from the pressure on NZ prices.

Applying the latest Dairy Australia monthly spot quotes we achieve an Australian commodity milk value (ACMV) of $9.21/kgMS, a 25% uplift on the export prices quotes across the ditch. The ACMV peaked at $10.73/kgms recently, sliding mostly due to the 6 cent appreciation in the Australian dollar.