Atten Babler Dairy FX Indices – May ’18
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices strengthened throughout Apr ’18. The USD/Dairy Exporter FX Index increased to a new monthly record high value while the USD/Dairy Importer FX Index and USD/Domestic Dairy Importer FX Index each increased to four month highs 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, Indonesia, Algeria and the Philippines (represented in red in the chart below).
New Zealand accounts for over two fifths of the USD/Dairy Exporter FX Index, followed by the EU-28 at 29% and the United States at 17%. Australia and Argentina each account for between 5-10% of the index.
China accounts for a quarter of the USD/Dairy Importer FX Index while Russia accounts for a fifth. Mexico, Japan, Indonesia, Algeria and the Philippines each account for between 5-10% of the index.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 0.3 points during Apr ’18, finishing at a record high value of 73.7. The USD/Dairy Exporter FX Index has increased 11.6 points throughout the past six months and 73.6 points since the beginning of 2014. 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.
USD appreciation within the USD/Dairy Exporter FX Index during Apr ‘18 was led by gains against the euro, followed by gains against the Argentine peso, Australian dollar and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 2.7 points during Apr ’18, finishing at a four month high value of 38.6. The USD/Dairy Importer FX Index has increased 0.8 points throughout the past six months and 35.1 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 Apr ‘18 was led by gains against the Russian ruble, followed by gains against the Brazilian real and Japanese yen. USD declines were exhibited against the Chinese yuan renminbi and Mexican peso.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines, Indonesia, Japan and South Korea.
Mexico accounts for nearly a quarter of the USD/Domestic Dairy Importer FX Index, followed by China at 12%. Canada, the Philippines, Indonesia, Japan and South Korea each account for between 5-10% of the index.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 0.4 points during Apr ’18, finishing at a four month high value of 57.8. The USD/Domestic Dairy Importer FX Index has increased 1.1 points throughout the past six months and 38.0 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 and Egyptian pound has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Apr ‘18 was led by gains against the Iranian rial, followed by gains against the Brazilian real and Japanese yen. USD declines were exhibited against the Canadian dollar and Mexican peso.
New Zealand accounts for over two fifths of the USD/Dairy Exporter FX Index, followed by the EU-28 at 29% and the United States at 17%. Australia and Argentina each account for between 5-10% of the index.
China accounts for a quarter of the USD/Dairy Importer FX Index while Russia accounts for a fifth. Mexico, Japan, Indonesia, Algeria and the Philippines each account for between 5-10% of the index.
USD/Dairy Exporter FX Index:
The USD/Dairy Exporter FX Index increased 0.3 points during Apr ’18, finishing at a record high value of 73.7. The USD/Dairy Exporter FX Index has increased 11.6 points throughout the past six months and 73.6 points since the beginning of 2014. 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.
USD appreciation within the USD/Dairy Exporter FX Index during Apr ‘18 was led by gains against the euro, followed by gains against the Argentine peso, Australian dollar and New Zealand dollar.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index increased 2.7 points during Apr ’18, finishing at a four month high value of 38.6. The USD/Dairy Importer FX Index has increased 0.8 points throughout the past six months and 35.1 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 Apr ‘18 was led by gains against the Russian ruble, followed by gains against the Brazilian real and Japanese yen. USD declines were exhibited against the Chinese yuan renminbi and Mexican peso.
U.S. Dairy Export Destinations:
Major destinations for U.S. dairy exports are led by Mexico, followed by China, Canada, the Philippines, Indonesia, Japan and South Korea.
Mexico accounts for nearly a quarter of the USD/Domestic Dairy Importer FX Index, followed by China at 12%. Canada, the Philippines, Indonesia, Japan and South Korea each account for between 5-10% of the index.
USD/Domestic Dairy Importer FX Index:
The USD/Domestic Dairy Importer FX Index increased 0.4 points during Apr ’18, finishing at a four month high value of 57.8. The USD/Domestic Dairy Importer FX Index has increased 1.1 points throughout the past six months and 38.0 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 and Egyptian pound has accounted for the majority of the gains since the beginning of 2014.
USD appreciation within the USD/Domestic Dairy Importer FX Index during Apr ‘18 was led by gains against the Iranian rial, followed by gains against the Brazilian real and Japanese yen. USD declines were exhibited against the Canadian dollar and Mexican peso.