Atten Babler Dairy FX Indices – Jan ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices continued to increase to new record highs during Dec ’15. The USD/Dairy Exporter FX Index increased the most during the month, followed by the USD/Dairy Importer FX Index and the USD/Domestic 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 increased 6.3 points in Dec ’15 to a new record high value of 135.6. The USD/Dairy Exporter FX Index has increased 35.7 points since the beginning of 2014 and 12.4 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 Dec ’15 was led by gains against the Argentine peso. USD declines were exhibited against the Australian dollar, euro and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 4.3 points in Dec ’15 to a new record high value of 148.8. The USD/Dairy Importer FX Index has increased 42.5 points since the beginning of 2014 and 16.8 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 Dec ’15 was led by gains against the Russian ruble, followed by USD appreciated against the Mexican peso, Chinese yuan renminbi, Indonesian rupiah and 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 1.5 points in Dec ’15 to a new record high value of 147.2. The USD/Domestic Dairy Importer FX Index has increased 25.6 points since the beginning of 2014 and 8.9 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 Dec ’15 was led by gains against the Mexican peso, followed by USD appreciated against the Canadian dollar, Indonesian rupiah, Chinese yuan renminbi and South Korean won.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 6.3 points in Dec ’15 to a new record high value of 135.6. The USD/Dairy Exporter FX Index has increased 35.7 points since the beginning of 2014 and 12.4 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 Dec ’15 was led by gains against the Argentine peso. USD declines were exhibited against the Australian dollar, euro and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 4.3 points in Dec ’15 to a new record high value of 148.8. The USD/Dairy Importer FX Index has increased 42.5 points since the beginning of 2014 and 16.8 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 Dec ’15 was led by gains against the Russian ruble, followed by USD appreciated against the Mexican peso, Chinese yuan renminbi, Indonesian rupiah and 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 1.5 points in Dec ’15 to a new record high value of 147.2. The USD/Domestic Dairy Importer FX Index has increased 25.6 points since the beginning of 2014 and 8.9 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 Dec ’15 was led by gains against the Mexican peso, followed by USD appreciated against the Canadian dollar, Indonesian rupiah, Chinese yuan renminbi and South Korean won.