Atten Babler Ethanol FX Indices – Dec ’20
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices weakened throughout Nov ’20. The USD/Ethanol Producer FX Index declined from the five month high level experienced throughout the previous month while the USD/Domestic Ethanol Importer FX Index declined to a nine month low level.
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 declined 1.4 points from the five month high level experienced throughout the previous month during Nov ’20, finishing at a value of 134.7. The USD/Ethanol Producer FX Index has declined 2.4 points throughout the past six months but remains up 30.1 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.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Nov ’20 was led by gains by the Brazilian real, followed by gains by the Chinese yuan renminbi, euro and Canadian dollar. USD gains were exhibited against the 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 declined 1.1 points throughout Nov ’20, finishing at a nine month low value of 112.0. The USD/Domestic Ethanol Importer FX Index has declined 6.0 points throughout the past six months but remains up 24.3 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 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 Nov ’20 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Mexican peso and Philippine peso. USD gains were exhibited against the Indian rupee.
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 declined 1.4 points from the five month high level experienced throughout the previous month during Nov ’20, finishing at a value of 134.7. The USD/Ethanol Producer FX Index has declined 2.4 points throughout the past six months but remains up 30.1 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.
Appreciation against the USD within the USD/Ethanol Producer FX Index during Nov ’20 was led by gains by the Brazilian real, followed by gains by the Chinese yuan renminbi, euro and Canadian dollar. USD gains were exhibited against the 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 declined 1.1 points throughout Nov ’20, finishing at a nine month low value of 112.0. The USD/Domestic Ethanol Importer FX Index has declined 6.0 points throughout the past six months but remains up 24.3 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 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 Nov ’20 was led by gains by the Canadian dollar, followed by gains by the Brazilian real, Mexican peso and Philippine peso. USD gains were exhibited against the Indian rupee.