Atten Babler Meat FX Indices – Jul ’16
The Atten Babler Commodities Meat Foreign Exchange (FX) Indices declined during Jun ’16, although each remained near recently experienced record highs. The USD/Meat Exporter FX Index declined for the fourth consecutive month but remained at the sixth highest figure on record while the USD/Meat Importer FX Index and the USD/Domestic Meat Importer FX Index each remained at the third highest figures on record, despite the monthly declines.
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 fourth consecutive month during Jun ’16, declining 1.3 points to a value of 89.0. The USD/Meat Exporter FX Index remained at the sixth highest figure on record and has increased 57.1 points since the beginning of 2014 and 1.8 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 Jun ’16 was led by gains by the Brazilian real, followed by gains by the Uruguayan peso. USD appreciation was exhibited against the euro, Belarusian ruble and Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 1.7 points during Jun ’16, finishing at a value of 125.8. The USD/Meat Importer FX Index remains at the third highest figure on record and has increased 64.6 points since the beginning of 2014 and 29.7 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 Venezuelan bolivar and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Importer FX Index during Jun ’16 was led by gains by the Japanese yen, followed by gains by the Russian ruble, South African rand and Ukrainian hryvnia. USD appreciation was exhibited against the Mexican peso.
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 declined 0.2 points in Jun ’16, finishing at a value of 100.7. The USD/Domestic Meat Importer FX Index remained at the third highest figure on record and has increased 54.3 points since the beginning of 2014 and 11.6 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.
Appreciation against the USD within the USD/Domestic Meat Importer FX Index during Jun ’16 was led by gains by the Japanese yen, followed by gains by the Russian ruble and Angolan kwanza. USD appreciation was exhibited against the Chinese yuan renminbi and Mexican peso.
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index finished lower for the fourth consecutive month during Jun ’16, declining 1.3 points to a value of 89.0. The USD/Meat Exporter FX Index remained at the sixth highest figure on record and has increased 57.1 points since the beginning of 2014 and 1.8 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 Jun ’16 was led by gains by the Brazilian real, followed by gains by the Uruguayan peso. USD appreciation was exhibited against the euro, Belarusian ruble and Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 1.7 points during Jun ’16, finishing at a value of 125.8. The USD/Meat Importer FX Index remains at the third highest figure on record and has increased 64.6 points since the beginning of 2014 and 29.7 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 Venezuelan bolivar and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Importer FX Index during Jun ’16 was led by gains by the Japanese yen, followed by gains by the Russian ruble, South African rand and Ukrainian hryvnia. USD appreciation was exhibited against the Mexican peso.
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 declined 0.2 points in Jun ’16, finishing at a value of 100.7. The USD/Domestic Meat Importer FX Index remained at the third highest figure on record and has increased 54.3 points since the beginning of 2014 and 11.6 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.
Appreciation against the USD within the USD/Domestic Meat Importer FX Index during Jun ’16 was led by gains by the Japanese yen, followed by gains by the Russian ruble and Angolan kwanza. USD appreciation was exhibited against the Chinese yuan renminbi and Mexican peso.