Atten Babler Dairy FX Indices – Jun ’20
The Atten Babler Commodities Dairy Foreign Exchange (FX) Indices were mixed throughout May ’20. The USD/Dairy Exporter FX Index increased to a record high level however the USD/Dairy Importer FX Index and USD/Domestic Dairy Importer FX Index each declined from the record high levels experienced throughout the previous 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 9.3 points during May ’20, finishing at a record high value of 310.4. The USD/Dairy Exporter FX Index has increased 40.5 points throughout the past six months and 310.2 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 May ’20 was led by gains against the Argentine peso. USD declines were exhibited against the New Zealand dollar, Australian dollar and euro.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 2.6 points during May ’20, finishing at a value of 62.7. Despite declining from the previous month, the USD/Dairy Importer FX Index remained at the second highest level on record. The USD/Dairy Importer FX Index has increased 15.6 points throughout the past six months and 59.2 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 and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Dairy Importer FX Index during May ’20 was led by gains by the Russian ruble, followed by gains by the Indonesian rupiah and Mexican peso. USD gains were exhibited against the Brazilian real and Algerian dinar.
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 declined 2.5 points during May ’20, finishing at a value of 77.9. Despite declining from the previous month, the USD/Domestic Dairy Importer FX Index remained at the second highest level on record. The USD/Domestic Dairy Importer FX Index has increased 14.0 points throughout the past six months and 58.1 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 Iranian rial has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during May ’20 was led by gains by the Mexican peso, followed by gains by the Indonesian rupiah. USD gains were exhibited against the Brazilian real, Dominican peso and Chinese yuan renminbi.
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 9.3 points during May ’20, finishing at a record high value of 310.4. The USD/Dairy Exporter FX Index has increased 40.5 points throughout the past six months and 310.2 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 May ’20 was led by gains against the Argentine peso. USD declines were exhibited against the New Zealand dollar, Australian dollar and euro.
USD/Dairy Importer FX Index:
The USD/Dairy Importer FX Index declined 2.6 points during May ’20, finishing at a value of 62.7. Despite declining from the previous month, the USD/Dairy Importer FX Index remained at the second highest level on record. The USD/Dairy Importer FX Index has increased 15.6 points throughout the past six months and 59.2 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 and Mexican peso has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Dairy Importer FX Index during May ’20 was led by gains by the Russian ruble, followed by gains by the Indonesian rupiah and Mexican peso. USD gains were exhibited against the Brazilian real and Algerian dinar.
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 declined 2.5 points during May ’20, finishing at a value of 77.9. Despite declining from the previous month, the USD/Domestic Dairy Importer FX Index remained at the second highest level on record. The USD/Domestic Dairy Importer FX Index has increased 14.0 points throughout the past six months and 58.1 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 Iranian rial has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Dairy Importer FX Index during May ’20 was led by gains by the Mexican peso, followed by gains by the Indonesian rupiah. USD gains were exhibited against the Brazilian real, Dominican peso and Chinese yuan renminbi.