Atten Babler Dairy FX Indices – May ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices declined for the second consecutive month during Apr ’16 but remained near recently experienced record highs. The USD/Dairy Exporter FX Index remained at the third highest figure on record while the USD/Domestic Dairy Importer FX Index and the USD/ Dairy Importer FX Index finished the month at the fifth and sixth highest figures on record, respectively.
Global Dairy Net Trade:
Major net dairy exporters are led by New Zealand, followed by the EU-28, the U.S., Australia and Argentina (represented in green in the chart below). Major net dairy importers are led by China, followed by Russia, Mexico, Japan and Indonesia (represented in red in the chart below).
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index finished lower for the second consecutive month during Apr ’16, declining 3.8 points to a value of 148.7. The USD/Dairy Exporter FX Index remained at the third highest figure on record and has increased 48.8 points since the beginning of 2014 and 21.8 points throughout the past six months. A strong USD/Dairy Exporter FX Index reduces the competitiveness of U.S. dairy products relative to other exporting regions (represented in green in the Global Dairy Net Trade chart), 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.
Appreciation against the USD within the USD/Dairy Exporter FX Index during Apr ’16 was led by gains by the Argentine peso, followed by gains by the New Zealand dollar, euro and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index also finished lower for the second consecutive month during Apr ’16, declining 3.3 points to a value of 144.5. The USD/Dairy Importer FX Index remained at the sixth highest figure on record and has increased 38.3 points since the beginning of 2014 and 1.9 points throughout the past six months. A strong USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries (represented in red in the Global Dairy Net Trade chart), 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.
Appreciation against the USD within the USD/Dairy Importer FX Index during Apr ’16 was led by gains by the Russian ruble, followed by gains by the Brazilian real, Japanese yen, Mexican peso and South Korean won.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines and Indonesia.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index also finished lower for the second consecutive month during Apr ’16, declining 1.0 points to a value of 146.8. The USD/Domestic Dairy Importer FX Index remained at the fifth highest figure on record and has increased 25.1 points since the beginning of 2014 and 2.0 points throughout the past six months. A strong USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products (represented in red in the U.S. Dairy Export Destinations chart), ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso and Iranian rial has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during Apr ’16 was led by gains by the Mexican peso, followed by gains by the Canadian dollar, Japanese yen and South Korean won. USD appreciation was exhibited against the Egyptian pound.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index finished lower for the second consecutive month during Apr ’16, declining 3.8 points to a value of 148.7. The USD/Dairy Exporter FX Index remained at the third highest figure on record and has increased 48.8 points since the beginning of 2014 and 21.8 points throughout the past six months. A strong USD/Dairy Exporter FX Index reduces the competitiveness of U.S. dairy products relative to other exporting regions (represented in green in the Global Dairy Net Trade chart), 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.
Appreciation against the USD within the USD/Dairy Exporter FX Index during Apr ’16 was led by gains by the Argentine peso, followed by gains by the New Zealand dollar, euro and Australian dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index also finished lower for the second consecutive month during Apr ’16, declining 3.3 points to a value of 144.5. The USD/Dairy Importer FX Index remained at the sixth highest figure on record and has increased 38.3 points since the beginning of 2014 and 1.9 points throughout the past six months. A strong USD/Dairy Importer FX Index results in less purchasing power for major dairy importing countries (represented in red in the Global Dairy Net Trade chart), 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.
Appreciation against the USD within the USD/Dairy Importer FX Index during Apr ’16 was led by gains by the Russian ruble, followed by gains by the Brazilian real, Japanese yen, Mexican peso and South Korean won.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines and Indonesia.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index also finished lower for the second consecutive month during Apr ’16, declining 1.0 points to a value of 146.8. The USD/Domestic Dairy Importer FX Index remained at the fifth highest figure on record and has increased 25.1 points since the beginning of 2014 and 2.0 points throughout the past six months. A strong USD/Domestic Dairy Importer FX Index results in less purchasing power for the traditional buyers of U.S. dairy products (represented in red in the U.S. Dairy Export Destinations chart), ultimately resulting in less foreign demand for U.S. products, all other factors being equal. USD appreciation against the Mexican peso and Iranian rial has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during Apr ’16 was led by gains by the Mexican peso, followed by gains by the Canadian dollar, Japanese yen and South Korean won. USD appreciation was exhibited against the Egyptian pound.