Atten Babler Ethanol FX Indices – May ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices declined for the third consecutive month throughout Apr’16 but remain higher on a year-over-year basis. The USD/Domestic Ethanol Importer FX Index declined the most during the month, finishing at an eight month low, while the USD/Ethanol Producer FX Index also finished at an eight month low throughout the month.
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 finished lower for the third consecutive month during Apr ’16, declining 2.4 points to an eight month low value of 126.5. The USD/Ethanol Producer FX Index has declined 4.9 points over the past six months but remains up 20.2 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 Apr ’16 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar, Indian rupee 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.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index also finished lower for the third consecutive month during Apr ’16, declining 2.5 points to an eight month low value of 111.4. The USD/Domestic Ethanol Importer FX Index has declined 1.4 points over the past six months but remains up 19.4 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 Apr ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Peruvian nuevo sol, Mexican peso and Philippine peso.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index finished lower for the third consecutive month during Apr ’16, declining 2.4 points to an eight month low value of 126.5. The USD/Ethanol Producer FX Index has declined 4.9 points over the past six months but remains up 20.2 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 Apr ’16 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar, Indian rupee 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.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index also finished lower for the third consecutive month during Apr ’16, declining 2.5 points to an eight month low value of 111.4. The USD/Domestic Ethanol Importer FX Index has declined 1.4 points over the past six months but remains up 19.4 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 Apr ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Peruvian nuevo sol, Mexican peso and Philippine peso.