Atten Babler Ethanol FX Indices – Jun ’15
The U.S. dollar (USD) remained at elevated levels within the Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices, although slight declines were experienced for the second consecutive month during May ’15. The USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX Index declined slightly throughout the month, however both indices remain at the third highest figures experienced in the past ten years.
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 0.3 points in May ’15 to a value of 118.4. The USD/Ethanol Producer FX Index remains at the third highest figure experienced in the past ten years and has increased 12.1 points since the beginning of 2014 and 8.6 points throughout the past six months. A strengthening USD/Ethanol Producer FX Index reduces the competitiveness of U.S. ethanol relative to other major producing regions, 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, despite the Brazilian real strengthening against the USD over the past two months.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy 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 0.8 points in May ’15 a value of 104.4. The USD/Domestic Ethanol Importer FX Index remains at the third highest figure experienced in the past ten years and has increased 12.4 points since the beginning of 2014 and 7.4 points throughout the past six months. A strengthening USD/Domestic Ethanol Importer FX Index results in less purchasing power for the traditional buyers of U.S. ethanol, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Canadian dollar and Brazilian real has accounted for the majority of the gains since the beginning of 2014, despite both currencies strengthening against the USD over the past two months.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 0.3 points in May ’15 to a value of 118.4. The USD/Ethanol Producer FX Index remains at the third highest figure experienced in the past ten years and has increased 12.1 points since the beginning of 2014 and 8.6 points throughout the past six months. A strengthening USD/Ethanol Producer FX Index reduces the competitiveness of U.S. ethanol relative to other major producing regions, 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, despite the Brazilian real strengthening against the USD over the past two months.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy 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 0.8 points in May ’15 a value of 104.4. The USD/Domestic Ethanol Importer FX Index remains at the third highest figure experienced in the past ten years and has increased 12.4 points since the beginning of 2014 and 7.4 points throughout the past six months. A strengthening USD/Domestic Ethanol Importer FX Index results in less purchasing power for the traditional buyers of U.S. ethanol, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Canadian dollar and Brazilian real has accounted for the majority of the gains since the beginning of 2014, despite both currencies strengthening against the USD over the past two months.