Atten Babler Corn & Soybeans FX Indices – Jun…
Corn FX Indices:
The Atten Babler Commodities Corn Foreign Exchange (FX) Indices continued to remain near record high levels during May ’16. The USD/Corn Exporter FX Index declined for the third consecutive month but remained at the fourth highest figure on record while the USD/Corn Importer FX Index and USD/Domestic Corn Importer FX Index each increased to near record high levels throughout the month.
Global Corn Net Trade:
Major net corn exporters are led by the U.S., followed by Brazil, Ukraine, Argentina, Russia and India (represented in green in the chart below). Major net corn importers are led by Japan, followed by the EU-28, South Korea, Mexico and Egypt (represented in red in the chart below).
USD/Corn Exporter FX Index:
The USD/Corn Exporter FX Index finished lower for the third consecutive month during May ’16, declining 3.9 points to a value of 234.0. The USD/Corn Exporter FX Index remained at the fourth highest figure on record and has increased 153.2 points since the beginning of 2014 and 50.2 points throughout the past six months. A strong USD/Corn Exporter FX Index reduces the competitiveness of U.S. corn relative to other exporting regions (represented in green in the Global Corn Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Corn Exporter FX Index during May ’16 was led by gains by the Argentine peso, followed by gains by the Ukrainian hryvnia, Brazilian real and Russian ruble. USD appreciation was exhibited against the South African rand.
USD/Corn Importer FX Index:
The USD/Corn Importer FX Index increased 1.6 points during May ’16, finishing at a value of 128.2 The USD/Corn Importer FX Index has increased 31.5 points since the beginning of 2014 and 2.1 points throughout the past six months. A strong USD/Corn Importer FX Index results in less purchasing power for major corn importing countries (represented in red in the Global Corn Net Trade chart), making U.S. corn more expensive to import. USD appreciation against the Iranian rial and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Corn Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by USD appreciation against the South Korean won, Turkish lira, Iranian rial and Malaysian ringgit.
U.S. Corn Export Destinations:
Major destinations for U.S. corn are led by Japan, followed by Mexico, South Korea, Columbia, Egypt and China.
USD/Domestic Corn Importer FX Index:
The USD/Domestic Corn Importer FX Index increased 1.8 points during May ’16, finishing at a value of 48.9. The USD/Domestic Corn Importer FX Index has increased 18.3 points since the beginning of 2014 and 2.2 points throughout the past six months. A strong USD/Domestic Corn Importer FX Index results in less purchasing power for the traditional buyers of U.S. corn (represented in red in the U.S. Corn Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Corn Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the South Korean won, Chinese yuan renminbi and Taiwan new dollar. USD declines were exhibited against the Japanese yen.
Soybeans FX Indices:
The Atten Babler Commodities Soybeans Foreign Exchange (FX) Indices continued to remain near recently experienced highs during May ’16. The USD/Soybeans Exporter FX Index declined for the third consecutive month but remained at the fifth highest figure on record while the USD/Soybeans Importer FX Index and USD/Domestic Soybeans Importer FX Index each increased to levels near recently experienced highs throughout the month.
Global Soybeans Net Trade:
Major net soybeans exporters are led by Brazil, followed by the U.S., Argentina, Paraguay and Uruguay (represented in green in the chart below). Major net soybeans importers are led by China, followed by the EU-28, Mexico, Japan and Taiwan (represented in red in the chart below).
USD/Soybeans Exporter FX Index:
The USD/Soybeans Exporter FX Index finished lower for the third consecutive month during May ’16, declining 2.6 points to a value of 140.7. The USD/Soybeans Exporter FX Index remained at the fifth highest figure on record and has increased 88.1 points since the beginning of 2014 and 27.4 points throughout the past six months. A strong USD/Soybeans Exporter FX Index reduces the competitiveness of U.S. soybeans relative to other exporting regions (represented in green in the Global Soybeans Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Soybeans Exporter FX Index during May ’16 was led by gains by the Argentine peso, followed by gains by the Brazilian real. USD appreciation was exhibited against the Canadian dollar and Paraguayan guarani.
USD/Soybeans Importer FX Index:
The USD/Soybeans Importer FX Index increased 1.6 points during May ’16, finishing at a value of 1.6. The USD/Soybeans Importer FX Index has increased 13.9 points since the beginning of 2014 and 1.5 points throughout the past six months. A strong USD/Soybeans Importer FX Index results in less purchasing power for major soybeans importing countries (represented in red in the Global Soybeans Net Trade chart), making U.S. soybeans more expensive to import. USD appreciation against the Chinese yuan renminbi, Turkish lira and Russian ruble has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Soybeans Importer FX Index during May ’16 was led by gains against the Chinese yuan renminbi, followed by gains against the Turkish lira, Mexican peso and Indonesian rupiah. USD declines were exhibited against the Russian ruble.
U.S. Soybeans Export Destinations:
Major destinations for U.S. soybeans are led by China, followed by Mexico, Indonesia, Japan, Germany and Taiwan.
USD/Domestic Soybeans Importer FX Index:
The USD/Domestic Soybeans Importer FX Index increased 1.3 points during May ’16, finishing at a value of 4.2. The USD/Domestic Soybeans Importer FX Index has increased 14.1 points since the beginning of 2014 and 1.9 points throughout the past six months. A strong USD/Domestic Soybeans Importer FX Index results in less purchasing power for the traditional buyers of U.S. soybeans (represented in red in the U.S. Soybeans Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Mexican peso and Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Soybeans Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Chinese yuan renminbi, Turkish lira, Indonesian rupiah and South Korean won.