Atten Babler Ethanol FX Indices – Jul ’20
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices weakened throughout Jun ’20. The USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX Index declined from levels experienced throughout the previous month but each remained at the third highest levels on record.
Global Ethanol Producers:
Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.
The U.S. accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 6.8 points during Jun ’20, finishing at a value of 52.1. Despite declining from the previous month, the USD/Ethanol Producer FX Index remained at the third highest level on record. The USD/Ethanol Producer FX Index has increased 16.7 points throughout the past six months and 45.9 points since the beginning of 2014, despite the most recent declin. A strong USD/Ethanol Producer FX Index reduces the competitiveness of U.S. ethanol relative to other major producing regions (represented in green in the Global Ethanol Producers chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Jun ’20 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar and Chinese yuan renminbi. USD gains were exhibited against the Indian rupee.
U.S. Ethanol Export Destinations:
Major destinations for U.S. ethanol exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 4.3 points throughout Jun ’20, finishing at a value of 25.5. Despite declining from the previous month, the USD/Domestic Ethanol Importer FX Index remained at the third highest level on record. The USD/Domestic Ethanol Importer FX Index has increased 8.3 points throughout the past six months and 34.1 points since the beginning of 2014, despite the most recent decline. A strong USD/Domestic Ethanol Importer FX Index results in less purchasing power for the traditional buyers of U.S. ethanol (represented in red in the U.S. Ethanol Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Canadian dollar has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Ethanol Importer FX Index during Jun ’20 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Mexican peso, euro and Philippine peso.
The U.S. accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 6.8 points during Jun ’20, finishing at a value of 52.1. Despite declining from the previous month, the USD/Ethanol Producer FX Index remained at the third highest level on record. The USD/Ethanol Producer FX Index has increased 16.7 points throughout the past six months and 45.9 points since the beginning of 2014, despite the most recent declin. A strong USD/Ethanol Producer FX Index reduces the competitiveness of U.S. ethanol relative to other major producing regions (represented in green in the Global Ethanol Producers chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Jun ’20 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar and Chinese yuan renminbi. USD gains were exhibited against the Indian rupee.
U.S. Ethanol Export Destinations:
Major destinations for U.S. ethanol exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 4.3 points throughout Jun ’20, finishing at a value of 25.5. Despite declining from the previous month, the USD/Domestic Ethanol Importer FX Index remained at the third highest level on record. The USD/Domestic Ethanol Importer FX Index has increased 8.3 points throughout the past six months and 34.1 points since the beginning of 2014, despite the most recent decline. A strong USD/Domestic Ethanol Importer FX Index results in less purchasing power for the traditional buyers of U.S. ethanol (represented in red in the U.S. Ethanol Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Canadian dollar has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Ethanol Importer FX Index during Jun ’20 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Mexican peso, euro and Philippine peso.