Atten Babler Ethanol FX Indices – Aug ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices rebounded off of 11 month lows experienced during Jul ’16 as the USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX each increased slightly throughout the month.
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 increased for the first time in six months during Jul ’16, finishing up 0.7 points to a value of 22.2. The USD/Ethanol Producer FX Index has declined by 12.3 points over the past six months but remains up 16.0 points since the beginning of 2014. 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.
USD appreciation within the USD/Ethanol Producer FX Index during Jul ’16 was led by gains against the Brazilian real, followed by gains against the euro, Chinese yuan renminbi and Canadian dollar. USD declines 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.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index increased 0.6 points during Jul ’16, finishing at a value of 11.1. The USD/Domestic Ethanol Importer FX Index has declined 7.9 points over the past six months but remains up 19.7 points since the beginning of 2014. 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 Canadian dollar and the Brazilian real has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Ethanol Importer FX Index during Jul ’16 was led by gains against the Canadian dollar, followed by gains against the Brazilian real, Mexican peso and Jamaican dollar. USD declines were exhibited against the Indian rupee.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index increased for the first time in six months during Jul ’16, finishing up 0.7 points to a value of 22.2. The USD/Ethanol Producer FX Index has declined by 12.3 points over the past six months but remains up 16.0 points since the beginning of 2014. 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.
USD appreciation within the USD/Ethanol Producer FX Index during Jul ’16 was led by gains against the Brazilian real, followed by gains against the euro, Chinese yuan renminbi and Canadian dollar. USD declines 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.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index increased 0.6 points during Jul ’16, finishing at a value of 11.1. The USD/Domestic Ethanol Importer FX Index has declined 7.9 points over the past six months but remains up 19.7 points since the beginning of 2014. 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 Canadian dollar and the Brazilian real has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Ethanol Importer FX Index during Jul ’16 was led by gains against the Canadian dollar, followed by gains against the Brazilian real, Mexican peso and Jamaican dollar. USD declines were exhibited against the Indian rupee.