Atten Babler Dairy FX Indices – Jun ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices were mixed during May ’16, although each remained near recently experienced record highs. The USD/Dairy Exporter FX Index declined for the second consecutive month but remained at the fifth highest figure on record while the USD Dairy Importer FX Index and the USD/Domestic Dairy Importer FX Index each increased slightly throughout the month.
Global Dairy Net Trade:
Major net dairy exporters are led by New Zealand, followed by the EU-28, the U.S., Australia and Argentina (represented in green in the chart below). Major net dairy importers are led by China, followed by Russia, Mexico, Japan and Indonesia (represented in red in the chart below).
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index finished lower for the second consecutive month during May ’16, declining 0.5 points to a value of 48.9. The USD/Dairy Exporter FX Index remained at the fifth highest figure on record and has increased 48.7 points since the beginning of 2014 and 19.0 points throughout the past six months. A strong USD/Dairy Exporter FX Index reduces the competitiveness of U.S. dairy products relative to other exporting regions (represented in green in the Global Dairy Net Trade chart), ultimately resulting in less foreign demand for U.S. products, 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/Dairy Exporter FX Index during May ’16 was led by gains by the Argentine peso. USD appreciation was exhibited against the euro, Australian dollar and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.9 points during May ’16, finishing at a value of 42.4. The USD/Dairy Importer FX Index has increased 38.9 points since the beginning of 2014 and 0.9 points throughout the past six months. A strong USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries (represented in red in the Global Dairy Net Trade chart), making U.S. dairy products more expensive to import. USD appreciation against the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Dairy Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Indonesian rupiah, Chinese yuan renminbi and Australian dollar. USD declines were exhibited against the Russian ruble.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines and Indonesia.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 2.3 points during May ’16, finishing at a value of 47.0. The USD/Domestic Dairy Importer FX Index has increased 27.2 points since the beginning of 2014 and 3.4 points throughout the past six months. A strong USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products (represented in red in the U.S. Dairy Export Destinations chart), ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso and Iranian rial has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Indonesian rupiah, South Korean won, Malaysian ringgit and Australian dollar.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index finished lower for the second consecutive month during May ’16, declining 0.5 points to a value of 48.9. The USD/Dairy Exporter FX Index remained at the fifth highest figure on record and has increased 48.7 points since the beginning of 2014 and 19.0 points throughout the past six months. A strong USD/Dairy Exporter FX Index reduces the competitiveness of U.S. dairy products relative to other exporting regions (represented in green in the Global Dairy Net Trade chart), ultimately resulting in less foreign demand for U.S. products, 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/Dairy Exporter FX Index during May ’16 was led by gains by the Argentine peso. USD appreciation was exhibited against the euro, Australian dollar and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.9 points during May ’16, finishing at a value of 42.4. The USD/Dairy Importer FX Index has increased 38.9 points since the beginning of 2014 and 0.9 points throughout the past six months. A strong USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries (represented in red in the Global Dairy Net Trade chart), making U.S. dairy products more expensive to import. USD appreciation against the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Dairy Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Indonesian rupiah, Chinese yuan renminbi and Australian dollar. USD declines were exhibited against the Russian ruble.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines and Indonesia.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 2.3 points during May ’16, finishing at a value of 47.0. The USD/Domestic Dairy Importer FX Index has increased 27.2 points since the beginning of 2014 and 3.4 points throughout the past six months. A strong USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products (represented in red in the U.S. Dairy Export Destinations chart), ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso and Iranian rial has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during May ’16 was led by gains against the Mexican peso, followed by gains against the Indonesian rupiah, South Korean won, Malaysian ringgit and Australian dollar.