Atten Babler Ethanol FX Indices – Oct ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices strengthened throughout Sep ’16, as the USD/Ethanol Producer FX Index and USD/Domestic Ethanol Importer FX Index each rebounded off of 13 month lows experienced during the previous month.
Global Ethanol Producers:
Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.
The United States accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index increased 0.7 points throughout Sep ’16, finishing at a value of 21.9. The USD/Ethanol Producer FX Index remains down 7.1 points over the past six months but has increased by 15.7 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.
USD appreciation within the USD/Ethanol Producer FX Index during Sep ’16 was led by gains against the Brazilian real, followed by USD appreciation against the Canadian dollar and Chinese yuan renminbi. USD declines were exhibited against the euro and Indian rupee.
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.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index increased 1.2 points during Sep ’16, finishing at a value of 11.8. The USD/Domestic Ethanol Importer FX Index remains down 1.5 points over the past six months but has increased by 20.3 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.
USD appreciation within the USD/Domestic Ethanol Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Canadian dollar, Brazilian real, Philippine peso and Peruvian nuevo sol.
The United States accounts for half of the USD/Ethanol Producer FX Index while Brazil accounts for over a quarter of the index.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index increased 0.7 points throughout Sep ’16, finishing at a value of 21.9. The USD/Ethanol Producer FX Index remains down 7.1 points over the past six months but has increased by 15.7 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.
USD appreciation within the USD/Ethanol Producer FX Index during Sep ’16 was led by gains against the Brazilian real, followed by USD appreciation against the Canadian dollar and Chinese yuan renminbi. USD declines were exhibited against the euro and Indian rupee.
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.
Canada accounts for over a half of the USD/Domestic Ethanol Importer FX Index while the Philippines, Brazil, the United Arab Emirates, Peru and Mexico each account for between 5-10% of the index.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index increased 1.2 points during Sep ’16, finishing at a value of 11.8. The USD/Domestic Ethanol Importer FX Index remains down 1.5 points over the past six months but has increased by 20.3 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.
USD appreciation within the USD/Domestic Ethanol Importer FX Index during Sep ’16 was led by gains against the Mexican peso, followed by USD appreciation against the Canadian dollar, Brazilian real, Philippine peso and Peruvian nuevo sol.