Atten Babler Ethanol FX Indices – Mar ’17
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices continued to decline throughout Feb ’17. The USD/Ethanol Producer FX Index declined to a 20 month low throughout the month while the USD/Domestic Ethanol Importer FX Index finished at a four month low.
Global Ethanol Producers:
Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.
The U.S. accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 1.5 points throughout Feb ’17, finishing at a 20 month low value of 20.0. The USD/Ethanol Producer FX Index has declined 1.2 points over the past six months but remains up 13.8 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 Feb ’17 was led by gains by the Brazilian real, followed by gains by the Indian rupee, Canadian dollar, euro and Chinese yuan renminbi.
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.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 1.6 points during Feb ’17, finishing at a four month low value of 12.4. Despite recent declines, the USD/Domestic Ethanol Importer FX Index remains up 1.9 points over the past six months and 21.0 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 Mexican peso 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 Feb ’17 was led by gains by the Mexican peso, followed by gains by the Canadian dollar, Brazilian real, Peruvian nuevo sol and Indian rupee.
The U.S. accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 1.5 points throughout Feb ’17, finishing at a 20 month low value of 20.0. The USD/Ethanol Producer FX Index has declined 1.2 points over the past six months but remains up 13.8 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 Feb ’17 was led by gains by the Brazilian real, followed by gains by the Indian rupee, Canadian dollar, euro and Chinese yuan renminbi.
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.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 1.6 points during Feb ’17, finishing at a four month low value of 12.4. Despite recent declines, the USD/Domestic Ethanol Importer FX Index remains up 1.9 points over the past six months and 21.0 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 Mexican peso 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 Feb ’17 was led by gains by the Mexican peso, followed by gains by the Canadian dollar, Brazilian real, Peruvian nuevo sol and Indian rupee.