Atten Babler Dairy FX Indices – Aug ’16
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices were mixed during Jul ’16. The USD/Dairy Exporter FX Index declined slightly while the USD Dairy Importer FX Index and the USD/Domestic Dairy Importer FX Index each posted small gains throughout the month.
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 declined by 0.5 points during Jul ’16, finishing at a value of 51.3. The USD/Dairy Exporter FX Index remained at the fourth highest figure on record and has increased 51.1 points since the beginning of 2014 and 2.1 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 Jul ’16 was led by gains by the Argentine peso, followed by gains by the New Zealand dollar and Australian dollar. USD gains were exhibited against the euro.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.4 points during Jul ’16, finishing at a value of 41.0. The USD/Dairy Importer FX Index has declined 11.8 points throughout the past six months but remains up 37.4 points since the beginning of 2014. 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.
USD appreciation within the USD/Dairy Importer FX Index during Jul ’16 was led by gains against the Russian ruble, followed by gains against the Chinese yuan renminbi, Mexican peso, Brazilian real and Japanese yen.
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 increased 0.2 points during Jul ’16, finishing at a value of 47.0. The USD/Domestic Dairy Importer FX Index has declined 1.7 points throughout the past six months but has increased 27.2 points since the beginning of 2014. 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 has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Jul ’16 was led by gains against the Mexican peso, followed by gains against the Canadian dollar, Chinese yuan renminbi and Japanese yen. USD declines were exhibited against the South Korean won.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index declined by 0.5 points during Jul ’16, finishing at a value of 51.3. The USD/Dairy Exporter FX Index remained at the fourth highest figure on record and has increased 51.1 points since the beginning of 2014 and 2.1 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 Jul ’16 was led by gains by the Argentine peso, followed by gains by the New Zealand dollar and Australian dollar. USD gains were exhibited against the euro.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 0.4 points during Jul ’16, finishing at a value of 41.0. The USD/Dairy Importer FX Index has declined 11.8 points throughout the past six months but remains up 37.4 points since the beginning of 2014. 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.
USD appreciation within the USD/Dairy Importer FX Index during Jul ’16 was led by gains against the Russian ruble, followed by gains against the Chinese yuan renminbi, Mexican peso, Brazilian real and Japanese yen.
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 increased 0.2 points during Jul ’16, finishing at a value of 47.0. The USD/Domestic Dairy Importer FX Index has declined 1.7 points throughout the past six months but has increased 27.2 points since the beginning of 2014. 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 has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Jul ’16 was led by gains against the Mexican peso, followed by gains against the Canadian dollar, Chinese yuan renminbi and Japanese yen. USD declines were exhibited against the South Korean won.