Atten Babler Ethanol FX Indices – Aug ’18
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices were mixed throughout Jul ’18. The USD/Ethanol Producer FX Index increased to a 29 month high however the USD/Domestic Ethanol Importer FX Index declined slightly 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.
The U.S. 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 0.9 points during Jul ’18, finishing at a 29 month high value of 30.5. The USD/Ethanol Producer FX Index has increased 10.1 points throughout the past six months and 24.3 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 Jul ‘18 was led by gains against the Brazilian real, followed by gains against the Chinese yuan renminbi, Indian rupee and Canadian dollar. USD declines were exhibited against the 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.
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 declined 0.2 points throughout Jul ’18, finishing at a value of 15.5. The USD/Domestic Ethanol Importer FX Index remains up 6.9 points throughout the past six months and 24.1 points since the beginning of 2014, however. 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 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 Jul ’18 was led by gains by the Mexican peso. The USD strengthened against the Philippine peso, Indian rupee, Canadian dollar and Brazilian real.
The U.S. 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 0.9 points during Jul ’18, finishing at a 29 month high value of 30.5. The USD/Ethanol Producer FX Index has increased 10.1 points throughout the past six months and 24.3 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 Jul ‘18 was led by gains against the Brazilian real, followed by gains against the Chinese yuan renminbi, Indian rupee and Canadian dollar. USD declines were exhibited against the 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.
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 declined 0.2 points throughout Jul ’18, finishing at a value of 15.5. The USD/Domestic Ethanol Importer FX Index remains up 6.9 points throughout the past six months and 24.1 points since the beginning of 2014, however. 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 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 Jul ’18 was led by gains by the Mexican peso. The USD strengthened against the Philippine peso, Indian rupee, Canadian dollar and Brazilian real.