Atten Babler Meat FX Indices – Aug ’16
The Atten Babler Commodities Meat Foreign Exchange (FX) Indices increased during Jul ’16, finishing near record highs. The USD/Meat Exporter FX Index increased for the first time in five months, finishing at the sixth highest figure on record, while the USD/Meat Importer FX Index increased to the third highest figure on record and the USD/Domestic Meat Importer FX Index finished at the second highest figure on record throughout the month.
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 increased for the first time in five months during Jul ’16, finishing up 0.3 points to a value of 89.3. The USD/Meat Exporter FX Index has declined 9.3 points throughout the past six months but remain up 57.5 points since the beginning of 2014. A strong 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 Belarusian ruble and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Exporter FX Index during Jul ’16 was led by gains against the Brazilian real, followed by gains against the Turkish lira. USD declines were exhibited against the Australian dollar, Belarusian ruble and Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index increased 0.2 points during Jul ’16, finishing at a value of 126.0. The USD/Meat Importer FX Index remained at the third highest figure on record and has increased 64.8 points since the beginning of 2014 and 22.2 points throughout the past six months. A strong 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 Venezuelan bolivar and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Importer FX Index during Jul ’16 was led by gains against the Russian ruble, followed by gains against the Japanese yen and Mexican peso. USD declines were exhibited against the South Korean won and South African rand.
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/Domestic Meat Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 0.6 points in Jul ’16, finishing at a value of 101.3. The USD/Domestic Meat Importer FX Index finished at the second highest figure on record and has increased 54.9 points since the beginning of 2014 and 3.6 points throughout the past six months. A strong 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 and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Meat Importer FX Index during Jul ’16 was led by gains against the Mexican peso, followed by gains against the Turkish lira, Japanese yen and Russian ruble. USD appreciation was exhibited against the South Korean won.
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index increased for the first time in five months during Jul ’16, finishing up 0.3 points to a value of 89.3. The USD/Meat Exporter FX Index has declined 9.3 points throughout the past six months but remain up 57.5 points since the beginning of 2014. A strong 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 Belarusian ruble and Argentine peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Exporter FX Index during Jul ’16 was led by gains against the Brazilian real, followed by gains against the Turkish lira. USD declines were exhibited against the Australian dollar, Belarusian ruble and Argentine peso.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index increased 0.2 points during Jul ’16, finishing at a value of 126.0. The USD/Meat Importer FX Index remained at the third highest figure on record and has increased 64.8 points since the beginning of 2014 and 22.2 points throughout the past six months. A strong 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 Venezuelan bolivar and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Meat Importer FX Index during Jul ’16 was led by gains against the Russian ruble, followed by gains against the Japanese yen and Mexican peso. USD declines were exhibited against the South Korean won and South African rand.
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/Domestic Meat Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 0.6 points in Jul ’16, finishing at a value of 101.3. The USD/Domestic Meat Importer FX Index finished at the second highest figure on record and has increased 54.9 points since the beginning of 2014 and 3.6 points throughout the past six months. A strong 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 and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Meat Importer FX Index during Jul ’16 was led by gains against the Mexican peso, followed by gains against the Turkish lira, Japanese yen and Russian ruble. USD appreciation was exhibited against the South Korean won.