Atten Babler Dairy FX Indexes – May ’15
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indexes remained at or near record high levels during Apr ’15. The USD/Dairy Exporter FX Index increased to a new 13 year high, however the USD/Dairy Importer FX Index and USD/Domestic Dairy Importer FX Index fell by 5.3 points and 0.6 points, respectively throughout the month. Despite the declines, the USD/Dairy Importer FX Index and USD/Domestic Dairy Importer FX Index remain at the fourth highest and second highest figures on record, respectively.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 0.1 points in Apr ’15 to a value of 120.8, a 13 year high. The USD/Dairy Exporter FX Index has increased 20.9 points since the beginning of 2014 and 7.6 points throughout the past six months. A strengthening USD/Dairy Exporter FX Index reduces the competitiveness of U.S. dairy products relative to other exporting regions, ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Argentine peso has accounted for the majority of the gains since the beginning of 2014.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 5.3 points in Apr ’15 as the Russian ruble continues to strengthen against the USD. The USD/Dairy Importer FX Index remains at the fourth highest figure on record and has increased 23.5 points since the beginning of 2014 and 15.7 points throughout the past six months. A strengthening USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries, making U.S. dairy products more expensive to import. USD appreciation against the Russian ruble has accounted for the majority of the gains since the beginning of 2014, despite the recent pullbacks.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index declined 0.6 points in Apr ’15 from the record high experienced in Mar ’15 to a value of 136.3. The USD/Domestic Dairy Importer FX Index remains at the second highest figure on record and has increased 14.7 points since the beginning of 2014 and 10.4 points throughout the past six months. A strengthening USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products, ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso, Ukrainian hryvnia and Iranian rial has accounted for the majority of the gains since the beginning of 2014, despite the Mexican peso and Ukrainian hryvnia strengthening against the USD in Apr ’15.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 5.3 points in Apr ’15 as the Russian ruble continues to strengthen against the USD. The USD/Dairy Importer FX Index remains at the fourth highest figure on record and has increased 23.5 points since the beginning of 2014 and 15.7 points throughout the past six months. A strengthening USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries, making U.S. dairy products more expensive to import. USD appreciation against the Russian ruble has accounted for the majority of the gains since the beginning of 2014, despite the recent pullbacks.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index declined 0.6 points in Apr ’15 from the record high experienced in Mar ’15 to a value of 136.3. The USD/Domestic Dairy Importer FX Index remains at the second highest figure on record and has increased 14.7 points since the beginning of 2014 and 10.4 points throughout the past six months. A strengthening USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products, ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso, Ukrainian hryvnia and Iranian rial has accounted for the majority of the gains since the beginning of 2014, despite the Mexican peso and Ukrainian hryvnia strengthening against the USD in Apr ’15.