Atten Babler Ethanol FX Indices – Apr ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices declined throughout Mar ’16 but remain higher on a year-over-year basis. The USD/Ethanol Producer FX Index declined the most during the month, finishing at a seven month low, while the USD/Domestic Ethanol Importer FX Index finished at a five month low.
Global Ethanol Producers:
Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 4.4 points in Mar ’16 to a seven month low value of 128.9. The USD/Ethanol Producer FX Index has remained up 22.6 points since the beginning of 2014 but has declined 3.0 points throughout the past six months. A strengthening 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 Mar ’16 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Indian rupee, Chinese yuan renminbi and euro.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 4.3 points in Mar ’16 to a five month low value of 113.9. The USD/Domestic Ethanol Importer FX Index has remained up 21.9 points since the beginning of 2014 but has declined 0.1 points throughout the past six months. A strengthening 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 Canadian dollar and the Brazilian real 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 Mar ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Mexican peso, Philippine peso and Peruvian nuevo sol.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 4.4 points in Mar ’16 to a seven month low value of 128.9. The USD/Ethanol Producer FX Index has remained up 22.6 points since the beginning of 2014 but has declined 3.0 points throughout the past six months. A strengthening 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 Mar ’16 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Indian rupee, Chinese yuan renminbi and euro.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 4.3 points in Mar ’16 to a five month low value of 113.9. The USD/Domestic Ethanol Importer FX Index has remained up 21.9 points since the beginning of 2014 but has declined 0.1 points throughout the past six months. A strengthening 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 Canadian dollar and the Brazilian real 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 Mar ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Mexican peso, Philippine peso and Peruvian nuevo sol.