The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices weakened throughout Apr ’22. The USD/Ethanol Producer FX Index declined to a 26 month low level while the USD/Domestic Ethanol Importer FX Index reached a nine month low level throughout the month.

Global Ethanol Producers:

Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.

The U.S. accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.

USD/Ethanol Producer FX Index:

The USD/Ethanol Producer FX Index declined 1.7 points throughout Apr ’22, finishing at a 26 month low value of 130.2. The USD/Ethanol Producer FX Index has declined 5.0 points throughout the past six months but has remained up 25.6 points since the beginning of 2014. A strong USD/Ethanol Producer FX Index reduces the competitiveness of U.S. ethanol relative to other major producing regions (represented in green in the Global Ethanol Producers chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real has accounted for the majority of the gains since the beginning of 2014.

Appreciation against the USD within the USD/Ethanol Producer FX Index during Apr ’22 was led by gains by the Brazilian real, followed by gains by the Canadian dollar and Indian rupee. U.S. gains were exhibited against the euro and Chinese yuan renminbi.

U.S. Ethanol Export Destinations:

Major destinations for U.S. ethanol exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.

Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.

USD/Domestic Ethanol Importer FX Index:

The USD/Domestic Ethanol Importer FX Index declined 0.6 points throughout Apr ’22, finishing at a nine month low value of 110.3. The USD/Domestic Ethanol Importer FX Index has finished flat throughout the past six months but has remained up 22.6 points since the beginning of 2014. A strong USD/Domestic Ethanol Importer FX Index results in less purchasing power for the traditional buyers of U.S. ethanol (represented in red in the U.S. Ethanol Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Canadian dollar has accounted for the majority of the gains since the beginning of 2014.

Appreciation against the USD within the USD/Domestic Ethanol Importer FX Index during Apr ’22 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Mexican peso and Philippine peso. USD gains were exhibited against the euro.