Atten Babler Ethanol FX Indices – Mar ’16
The Atten Babler Commodities Ethanol Foreign Exchange (FX) Indices declined slightly throughout Feb ’16 but remain at the second highest figures on record. The USD/Domestic Ethanol Importer FX Index declined the most during the month, followed by the USD/Ethanol Producer FX Index.
Global Ethanol Producers:
Major ethanol producers are led by the U.S., followed by Brazil, the EU-28, China, India and Canada.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 1.3 points in Feb ’16 to a value of 133.2. The USD/Ethanol Producer FX Index remains at the second highest figure on record and has increased 26.9 points since the beginning of 2014 and 7.5 points throughout the past six months. A strengthening 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 Feb ’16 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar and Chinese yuan renminbi. USD appreciation was exhibited against the Indian rupee.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 1.4 points in Feb ’16 to a value of 118.1. The USD/Domestic Ethanol Importer FX Index remains at the second highest figure on record and has increased 26.1 points since the beginning of 2014 and 6.8 points throughout the past six months. A strengthening 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.
Appreciation against the USD within the USD/Ethanol Importer FX Index during Feb ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real. USD appreciation was exhibited against the Indian rupee, Peruvian nuevo sol and Mexican peso.
USD/Ethanol Producer FX Index:
The USD/Ethanol Producer FX Index declined 1.3 points in Feb ’16 to a value of 133.2. The USD/Ethanol Producer FX Index remains at the second highest figure on record and has increased 26.9 points since the beginning of 2014 and 7.5 points throughout the past six months. A strengthening 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 Feb ’16 was led by gains by the Brazilian real, followed by gains by the euro, Canadian dollar and Chinese yuan renminbi. USD appreciation was exhibited against the Indian rupee.
U.S. Ethanol Export Destinations:
Major destinations for U.S. dairy exports are led by Canada, followed by the Philippines, Brazil, the United Arab Emirates, Peru and Mexico.
USD/Domestic Ethanol Importer FX Index:
The USD/Domestic Ethanol Importer FX Index declined 1.4 points in Feb ’16 to a value of 118.1. The USD/Domestic Ethanol Importer FX Index remains at the second highest figure on record and has increased 26.1 points since the beginning of 2014 and 6.8 points throughout the past six months. A strengthening 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.
Appreciation against the USD within the USD/Ethanol Importer FX Index during Feb ’16 was led by gains by the Canadian dollar, followed by gains by the Brazilian real. USD appreciation was exhibited against the Indian rupee, Peruvian nuevo sol and Mexican peso.