Atten Babler Dairy FX Indices – Sep ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices declined throughout Aug ’16 but remained near recently experienced record highs. The USD/Dairy Exporter FX Index declined the most throughout the month, followed by the USD/Domestic Dairy Importer FX Index and the USD/Dairy Importer FX Index.
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 declined by 1.1 points during Aug ’16, finishing at a value of 50.2. The USD/Dairy Exporter FX Index has declined by 2.8 points throughout the past six months but remains up 50.1 points since the beginning of 2014. 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 Aug ’16 was led by gains by the New Zealand dollar, followed by gains by the euro, Argentine peso and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 0.4 points during Aug ’16, finishing at a value of 40.6. The USD/Dairy Importer FX Index has declined 11.6 points throughout the past six months but remains up 37.1 points since the beginning of 2014. 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.
Appreciation against the USD within the USD/Dairy Importer FX Index during Aug ’16 was led by gains by the Japanese yen, followed by gains by the Brazilian real, Mexican peso and Algerian dinar. USD gains 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 declined 0.6 points during Aug ’16, finishing at a value of 46.3. The USD/Domestic Dairy Importer FX Index has declined 2.6 points throughout the past six months but remains up 26.6 points since the beginning of 2014. 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 has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during Aug ’16 was led by gains by the Mexican peso, followed by gains by the South Korean won, Japanese yen, Philippine peso and Brazilian real.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index declined by 1.1 points during Aug ’16, finishing at a value of 50.2. The USD/Dairy Exporter FX Index has declined by 2.8 points throughout the past six months but remains up 50.1 points since the beginning of 2014. 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 Aug ’16 was led by gains by the New Zealand dollar, followed by gains by the euro, Argentine peso and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 0.4 points during Aug ’16, finishing at a value of 40.6. The USD/Dairy Importer FX Index has declined 11.6 points throughout the past six months but remains up 37.1 points since the beginning of 2014. 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.
Appreciation against the USD within the USD/Dairy Importer FX Index during Aug ’16 was led by gains by the Japanese yen, followed by gains by the Brazilian real, Mexican peso and Algerian dinar. USD gains 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 declined 0.6 points during Aug ’16, finishing at a value of 46.3. The USD/Domestic Dairy Importer FX Index has declined 2.6 points throughout the past six months but remains up 26.6 points since the beginning of 2014. 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 has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during Aug ’16 was led by gains by the Mexican peso, followed by gains by the South Korean won, Japanese yen, Philippine peso and Brazilian real.