Atten Babler Meat FX Indices – Apr ’16
The Atten Babler Commodities Meat Foreign Exchange (FX) Indices declined slightly during Mar ’16 but remained near record highs experienced during the previous month. The USD/Meat Importer FX Index and USD/Domestic Corn Importer FX Index each remained at the second highest figures on record while the USD/Corn Exporter FX Index finished the month at the third highest figure on record.
Global Meat Net Trade:
Major net meat exporters are led by Brazil, followed by the U.S., the EU-28, India and Australia (represented in green in the chart below). Major net meat importers are led by Japan, followed by Russia, Mexico, Hong Kong and Saudi Arabia (represented in red in the chart below).
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index declined 5.0 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 174.3. The USD/Meat Exporter FX Index remained at the third highest figure on record and has increased 52.4 points since the beginning of 2014 and 10.4 points throughout the past six months. A strengthening USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions (represented in green in the Global Meat Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Exporter FX Index during Mar ’16 was led by gains by the Brazilian real, followed by gains by the Belarusian ruble, Australian dollar and Canadian dollar. USD appreciation was exhibited against the Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 3.4 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 241.1. The USD/Meat Importer FX Index remained at the second highest figure on record and has increased 61.4 points since the beginning of 2014 and 16.0 points throughout the past six months. A strengthening USD/Meat Importer FX Index results in less purchasing power for major meat importing countries (represented in red in the Global Meat Net Trade chart), making U.S. meat more expensive to import. USD appreciation against the Angolan kwanza and the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Importer FX Index during Mar ’16 was led by gains by the Russian ruble, followed by gains by the Mexican peso and Japanese yen. USD appreciation was exhibited against the Venezuelan bolivar and Angolan kwanza.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Meat Domestic Importer FX Index:
The USD/Domestic Meat Importer FX Index declined 3.4 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 242.7. The USD/Domestic Meat Importer FX Index remained at the second highest figure on record and has increased 69.2 points since the beginning of 2014 and 19.6 points throughout the past six months. A strengthening USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat (represented in red in the U.S. Meat Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Meat Importer FX Index during Mar ’16 was led by gains by the Mexican peso, followed by gains by the Russian ruble and Canadian dollar. USD appreciation was exhibited against the Egyptian pound and Angolan kwanza.
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index declined 5.0 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 174.3. The USD/Meat Exporter FX Index remained at the third highest figure on record and has increased 52.4 points since the beginning of 2014 and 10.4 points throughout the past six months. A strengthening USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions (represented in green in the Global Meat Net Trade chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Exporter FX Index during Mar ’16 was led by gains by the Brazilian real, followed by gains by the Belarusian ruble, Australian dollar and Canadian dollar. USD appreciation was exhibited against the Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 3.4 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 241.1. The USD/Meat Importer FX Index remained at the second highest figure on record and has increased 61.4 points since the beginning of 2014 and 16.0 points throughout the past six months. A strengthening USD/Meat Importer FX Index results in less purchasing power for major meat importing countries (represented in red in the Global Meat Net Trade chart), making U.S. meat more expensive to import. USD appreciation against the Angolan kwanza and the Russian ruble has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Meat Importer FX Index during Mar ’16 was led by gains by the Russian ruble, followed by gains by the Mexican peso and Japanese yen. USD appreciation was exhibited against the Venezuelan bolivar and Angolan kwanza.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Meat Domestic Importer FX Index:
The USD/Domestic Meat Importer FX Index declined 3.4 points in Mar ’16 from the record high figure experienced during the previous month, finishing at a value of 242.7. The USD/Domestic Meat Importer FX Index remained at the second highest figure on record and has increased 69.2 points since the beginning of 2014 and 19.6 points throughout the past six months. A strengthening USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat (represented in red in the U.S. Meat Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Meat Importer FX Index during Mar ’16 was led by gains by the Mexican peso, followed by gains by the Russian ruble and Canadian dollar. USD appreciation was exhibited against the Egyptian pound and Angolan kwanza.