Atten Babler Ethanol FX Indices – Sep ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices continued to decline throughout Aug ’16, as the USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX Index each finished at 13 month lows.
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 declined 1.1 points throughout Aug ’16, finishing at a 13 month low value of 21.2. The USD/Ethanol Producer FX Index has declined by 11.8 points over the past six months but remains up 15.0 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.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Aug ’16 was led by gains by the Brazilian real, followed by gains by the euro, Indian rupee, Chinese yuan renminbi and Canadian dollar.
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 declined 0.6 points during Aug ’16, finishing at a 13 month low value of 10.5. The USD/Domestic Ethanol Importer FX Index has declined 6.8 points over the past six months but remains up 19.1 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.
Appreciation against the USD within the USD/Domestic Ethanol Importer FX Index during Aug ’16 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Philippine peso and Mexican peso. USD gains were exhibited against the Peruvian nuevo sol.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 1.1 points throughout Aug ’16, finishing at a 13 month low value of 21.2. The USD/Ethanol Producer FX Index has declined by 11.8 points over the past six months but remains up 15.0 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.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Aug ’16 was led by gains by the Brazilian real, followed by gains by the euro, Indian rupee, Chinese yuan renminbi and Canadian dollar.
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 declined 0.6 points during Aug ’16, finishing at a 13 month low value of 10.5. The USD/Domestic Ethanol Importer FX Index has declined 6.8 points over the past six months but remains up 19.1 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.
Appreciation against the USD within the USD/Domestic Ethanol Importer FX Index during Aug ’16 was led by gains by the Brazilian real, followed by gains by the Canadian dollar, Philippine peso and Mexican peso. USD gains were exhibited against the Peruvian nuevo sol.