Atten Babler Dairy FX Indices – Oct ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices strengthened throughout Sep ’16, remaining near recently experienced record highs. The USD/Domestic Dairy Importer FX Index increased the most throughout the month, followed by the USD/Dairy Exporter 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).
New Zealand accounts for over two fifths of the USD/Dairy Exporter FX Index, followed by the EU-28 at 29% and the United States at 17%. Australia and Argentina each account for between 5-10% of the index.
China accounts for a quarter of the USD/Dairy Importer FX Index while Russia accounts for a fifth. Mexico, Japan, Indonesia Algeria and the Philippines each account for between 5-10% of the index.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 0.9 points during Sep ’16, finishing at a value of 51.2. The USD/Dairy Exporter FX Index remains down 2.5 points throughout the past six months but has increased by 51.0 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.
USD appreciation within the USD/Dairy Exporter FX Index during Sep ’16 was led by gains against the Argentine peso, followed by USD appreciation against the Australian dollar. USD declines were exhibited against the euro and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.8 points during Sep ’16, finishing at a value of 41.4. The USD/Dairy Importer FX Index remains down 4.0 points throughout the past six months but has increased by 37.9 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.
USD appreciation within the USD/Dairy Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Philippine peso, Brazilian real and Chinese yuan renminbi. 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.
Mexico accounts for nearly a quarter of the USD/Domestic Dairy Importer FX Index, followed by China at 12%. Canada, the Philippines, Indonesia, Japan and South Korea each account for between 5-10% of the index.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 2.2 points during Sep ’16, finishing at a value of 48.6. The USD/Domestic Dairy Importer FX Index has increased 28.8 points since the beginning of 2014 and 2.7 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 has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Philippine peso, Ukrainian hryvnia, Malaysian ringgit and Canadian dollar.
New Zealand accounts for over two fifths of the USD/Dairy Exporter FX Index, followed by the EU-28 at 29% and the United States at 17%. Australia and Argentina each account for between 5-10% of the index.
China accounts for a quarter of the USD/Dairy Importer FX Index while Russia accounts for a fifth. Mexico, Japan, Indonesia Algeria and the Philippines each account for between 5-10% of the index.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 0.9 points during Sep ’16, finishing at a value of 51.2. The USD/Dairy Exporter FX Index remains down 2.5 points throughout the past six months but has increased by 51.0 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.
USD appreciation within the USD/Dairy Exporter FX Index during Sep ’16 was led by gains against the Argentine peso, followed by USD appreciation against the Australian dollar. USD declines were exhibited against the euro and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.8 points during Sep ’16, finishing at a value of 41.4. The USD/Dairy Importer FX Index remains down 4.0 points throughout the past six months but has increased by 37.9 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.
USD appreciation within the USD/Dairy Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Philippine peso, Brazilian real and Chinese yuan renminbi. 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.
Mexico accounts for nearly a quarter of the USD/Domestic Dairy Importer FX Index, followed by China at 12%. Canada, the Philippines, Indonesia, Japan and South Korea each account for between 5-10% of the index.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 2.2 points during Sep ’16, finishing at a value of 48.6. The USD/Domestic Dairy Importer FX Index has increased 28.8 points since the beginning of 2014 and 2.7 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 has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Philippine peso, Ukrainian hryvnia, Malaysian ringgit and Canadian dollar.