Atten Babler Ethanol FX Indices – Jul ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices continued to decline during Jun ’16 as the USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX each reached 11 month lows 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 fifth consecutive month during Jun ’16, declining 4.5 points to an 11 month low value of 21.6. The USD/Ethanol Producer FX Index has declined 10.0 points over the past six months but remains up 15.4 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 Jun ’16 was led by gains by the Brazilian real. USD appreciation was exhibited against the Canadian dollar, Indian rupee, Chinese yuan renminbi and euro.
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 finished lower for the fourth time in the past five months during Jun ’16, declining 0.9 points to an 11 month low value of 10.6. The USD/Domestic Ethanol Importer FX Index has declined 4.8 points over the past six months but remains up 19.1 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 Jun ’16 was led by gains by the Brazilian real, followed by gains by the Peruvian nuevo sol. USD appreciation was exhibited against the Canadian dollar, British pound and Mexican peso.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index finished lower for the fifth consecutive month during Jun ’16, declining 4.5 points to an 11 month low value of 21.6. The USD/Ethanol Producer FX Index has declined 10.0 points over the past six months but remains up 15.4 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 Jun ’16 was led by gains by the Brazilian real. USD appreciation was exhibited against the Canadian dollar, Indian rupee, Chinese yuan renminbi and euro.
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 finished lower for the fourth time in the past five months during Jun ’16, declining 0.9 points to an 11 month low value of 10.6. The USD/Domestic Ethanol Importer FX Index has declined 4.8 points over the past six months but remains up 19.1 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 Jun ’16 was led by gains by the Brazilian real, followed by gains by the Peruvian nuevo sol. USD appreciation was exhibited against the Canadian dollar, British pound and Mexican peso.