Atten Babler Meat FX Indices – Jun ’16
The Atten Babler Commodities Meat Foreign Exchange (FX) Indices were mixed during May ’16, although each remained near recently experienced record highs. The USD/Meat Exporter FX Index declined for the third consecutive month but remained at the fifth highest figure on record while the USD/Meat Importer FX Index increased for the first time in three months and the USD/Domestic Meat Importer FX Index increased to the second highest figure on record.
Global Meat Net Trade:
Major net meat exporters are led by Brazil, followed by the U.S., the EU-28, India and Australia (represented in green in the chart below). Major net meat importers are led by Japan, followed by Russia, Mexico, Hong Kong and Saudi Arabia (represented in red in the chart below).
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index finished lower for the third consecutive month during May ’16, declining 0.8 points to a value of 90.3. The USD/Meat Exporter FX Index remained at the fifth highest figure on record and has increased 58.4 points since the beginning of 2014 and 8.4 points throughout the past six months. A strong USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions (represented in green in the Global Meat Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Belarusian ruble and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Exporter FX Index during May ’16 was led by gains by the Belarusian ruble, followed by gains by the Argentine peso and Brazilian real. USD appreciation was exhibited against the Turkish lira and Australian dollar.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index increased for the first time in three months during May ’16, finishing up 1.3 points to a value of 101.7. The USD/Meat Importer FX Index has increased 40.6 points since the beginning of 2014 and 8.7 points throughout the past six months. A strong USD/Meat Importer FX Index results in less purchasing power for major meat importing countries (represented in red in the Global Meat Net Trade chart), making U.S. meat more expensive to import. USD appreciation against the Angolan kwanza and the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Angolan kwanza, South African rand and South Korean won. USD declines were exhibited against the Russian ruble.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Domestic Meat Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 2.7 points in May ’16, finishing at a value of 100.9. The USD/Domestic Meat Importer FX Index finished at the second highest figure on record and has increased 54.5 points since the beginning of 2014 and 14.4 points throughout the past six months. A strong USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat (represented in red in the U.S. Meat Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Meat Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Angolan kwanza, Turkish lira and South Korean won. USD declines were exhibited against the Russian ruble.
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index finished lower for the third consecutive month during May ’16, declining 0.8 points to a value of 90.3. The USD/Meat Exporter FX Index remained at the fifth highest figure on record and has increased 58.4 points since the beginning of 2014 and 8.4 points throughout the past six months. A strong USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions (represented in green in the Global Meat Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Belarusian ruble and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Exporter FX Index during May ’16 was led by gains by the Belarusian ruble, followed by gains by the Argentine peso and Brazilian real. USD appreciation was exhibited against the Turkish lira and Australian dollar.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index increased for the first time in three months during May ’16, finishing up 1.3 points to a value of 101.7. The USD/Meat Importer FX Index has increased 40.6 points since the beginning of 2014 and 8.7 points throughout the past six months. A strong USD/Meat Importer FX Index results in less purchasing power for major meat importing countries (represented in red in the Global Meat Net Trade chart), making U.S. meat more expensive to import. USD appreciation against the Angolan kwanza and the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Angolan kwanza, South African rand and South Korean won. USD declines were exhibited against the Russian ruble.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Domestic Meat Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 2.7 points in May ’16, finishing at a value of 100.9. The USD/Domestic Meat Importer FX Index finished at the second highest figure on record and has increased 54.5 points since the beginning of 2014 and 14.4 points throughout the past six months. A strong USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat (represented in red in the U.S. Meat Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Meat Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Angolan kwanza, Turkish lira and South Korean won. USD declines were exhibited against the Russian ruble.