Atten Babler Meat FX Indices – Jun ’15
The Atten Babler Commodities Meat Foreign Exchange (FX) Indices remained at or near record high levels during May ’15. The USD/Domestic Meat Importer FX Index increased to a new record high, however the USD/Meat Exporter FX Index and USD/Meat Importer FX Index each declined slightly throughout the month. Despite the declines, the USD/Meat Exporter FX Index and USD/Meat Importer FX Index remain at the third and fourth highest figures on record, respectively.
Global Meat Net Trade:
Major net meat exporters are led by Brazil, followed by the U.S., the EU-28, India and Australia (represented in green in the chart below). Major net meat importers are led by Japan, followed by Russia, Mexico, Hong Kong and Saudi Arabia (represented in red in the chart below).
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index declined 0.3 points in May ’15 to a value of 146.3. The USD/Meat Exporter FX Index remains at the third highest figure on record and has increased 24.4 points since the beginning of 2014 and 14.2 points throughout the past six months. A strengthening USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Argentine peso has accounted for the majority of the gains since the beginning of 2014, despite the Brazilian real strengthening against the USD over the past two months.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 1.1 points in May ’15 to a value of 204.2. The USD/Meat Importer FX Index remains at the fourth highest figure on record and has increased 24.4 points since the beginning of 2014 and 11.9 points throughout the past six months. A strengthening USD/Meat Importer FX Index results in less purchasing power for major meat importing countries, making U.S. meat more expensive to import. USD appreciation against the Russian ruble and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014, despite the Russian ruble strengthening against the USD over the past three months.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Meat Domestic Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 0.6 points in May ’15 to a new high value of 199.8. The USD/Domestic Meat Importer FX Index has increased 26.2 points since the beginning of 2014 and 15.4 points throughout the past six months. A strengthening USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza, Mexican peso and Ghanaian cedi has accounted for the majority of the gains since the beginning of 2014.
USD/Meat Exporter FX Index:
The USD/Meat Exporter FX Index declined 0.3 points in May ’15 to a value of 146.3. The USD/Meat Exporter FX Index remains at the third highest figure on record and has increased 24.4 points since the beginning of 2014 and 14.2 points throughout the past six months. A strengthening USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Brazilian real and Argentine peso has accounted for the majority of the gains since the beginning of 2014, despite the Brazilian real strengthening against the USD over the past two months.
USD/Meat Importer FX Index:
The USD/Meat Importer FX Index declined 1.1 points in May ’15 to a value of 204.2. The USD/Meat Importer FX Index remains at the fourth highest figure on record and has increased 24.4 points since the beginning of 2014 and 11.9 points throughout the past six months. A strengthening USD/Meat Importer FX Index results in less purchasing power for major meat importing countries, making U.S. meat more expensive to import. USD appreciation against the Russian ruble and Angolan kwanza has accounted for the majority of the gains since the beginning of 2014, despite the Russian ruble strengthening against the USD over the past three months.
U.S. Meat Export Destinations:
Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.
USD/Meat Domestic Importer FX Index:
The USD/Domestic Meat Importer FX Index increased 0.6 points in May ’15 to a new high value of 199.8. The USD/Domestic Meat Importer FX Index has increased 26.2 points since the beginning of 2014 and 15.4 points throughout the past six months. A strengthening USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat, ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Angolan kwanza, Mexican peso and Ghanaian cedi has accounted for the majority of the gains since the beginning of 2014.