Atten Babler Dairy FX Indices – Dec ’15
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices remained at or near record highs during Nov ’15. The USD/Dairy Exporter FX Index increased to a new record high while the USD/Dairy Importer FX Index and the USD/Domestic Dairy Importer FX Index each increased to the second highest figures on record throughout the month.
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 increased 2.4 points in Nov ’15 to a new record high value of 129.3. The USD/Dairy Exporter FX Index has increased 29.5 points since the beginning of 2014 and 8.4 points throughout the past six months. 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 Nov ’15 was led by gains against the euro, followed by USD appreciated against the New Zealand dollar, Argentine peso and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 1.9 points in Nov ’15 to a value of 144.5, which was the second highest figure on record. The USD/Dairy Importer FX Index has increased 38.2 points since the beginning of 2014 and 16.4 points throughout the past six months. 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 Nov ’15 was led by gains against the Russian ruble, followed by USD appreciated against the Algerian dinar, Japanese yen and euro. USD declines were exhibited against the Brazilian real.
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 increased 0.9 points in Nov ’15 to a value of 145.7, which was the second highest figure on record. The USD/Domestic Dairy Importer FX Index has increased 24.0 points since the beginning of 2014 and 9.1 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, Iranian rial and Canadian dollar has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Nov ’15 was led by gains against the Ukrainian hryvnia, followed by USD appreciated against the Mexican peso, Canadian dollar and Japanese yen. USD declines were exhibited against the Philippine peso.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 2.4 points in Nov ’15 to a new record high value of 129.3. The USD/Dairy Exporter FX Index has increased 29.5 points since the beginning of 2014 and 8.4 points throughout the past six months. 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 Nov ’15 was led by gains against the euro, followed by USD appreciated against the New Zealand dollar, Argentine peso and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 1.9 points in Nov ’15 to a value of 144.5, which was the second highest figure on record. The USD/Dairy Importer FX Index has increased 38.2 points since the beginning of 2014 and 16.4 points throughout the past six months. 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 Nov ’15 was led by gains against the Russian ruble, followed by USD appreciated against the Algerian dinar, Japanese yen and euro. USD declines were exhibited against the Brazilian real.
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 increased 0.9 points in Nov ’15 to a value of 145.7, which was the second highest figure on record. The USD/Domestic Dairy Importer FX Index has increased 24.0 points since the beginning of 2014 and 9.1 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, Iranian rial and Canadian dollar has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Nov ’15 was led by gains against the Ukrainian hryvnia, followed by USD appreciated against the Mexican peso, Canadian dollar and Japanese yen. USD declines were exhibited against the Philippine peso.