Corn FX Indices:

The Atten Babler Commodities Corn Foreign Exchange (FX) Indices were mixed throughout Aug ’18. The USD/Corn Exporter FX Index and USD/Corn Importer FX Index each increased to new monthly record high values however the USD/Domestic Corn Importer FX Index declined to a three month low throughout the month.

Global Corn Net Trade:

Major net corn exporters are led by the U.S., followed by Brazil, Ukraine, Argentina, Russia and India (represented in green in the chart below). Major net corn importers are led by the EU-28, followed by Japan, Mexico, South Korea, Egypt and Iran (represented in red in the chart below).

The United States accounts for over two fifths of the USD/Corn Exporter FX Index, followed by Brazil at 18%, Ukraine at 16% and Argentina at 10%.

The EU-28 and Japan each account for 14% of the USD/Corn Importer FX Index. Mexico, South Korea, Egypt and Iran each account for between 5-10% of the index.

USD/Corn Exporter FX Index:

The USD/Corn Exporter FX Index increased 27.2 points during Aug ’18, finishing at a record high value of 405.6. The USD/Corn Exporter FX Index has increased 114.3 points throughout the past six months and 324.8 points since the beginning of 2014. A strong USD/Corn Exporter FX Index reduces the competitiveness of U.S. corn relative to other exporting regions (represented in green in the Global Corn Net Trade chart), ultimately resulting in less foreign demand, 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/Corn Exporter FX Index during Aug ’18 was led by gains against the Argentine peso, followed by gains against the Ukrainian hryvnia, Brazilian real, Russian ruble and South African rand.

USD/Corn Importer FX Index:

The USD/Corn Importer FX Index increased 0.3 points during Aug ’18, finishing at a record high value of 209.6. The USD/Corn Importer FX Index has increased 24.3 points throughout the past six months and 112.9 points since the beginning of 2014. A strong USD/Corn Importer FX Index results in less purchasing power for major corn importing countries (represented in red in the Global Corn Net Trade chart), making U.S. corn more expensive to import. USD appreciation against the Iranian rial and Egyptian pound has accounted for the majority of the gains since the beginning of 2014.

USD appreciation within the USD/Corn Importer FX Index during Aug ’18 was led by gains against the Turkish lira, followed by gains against the euro and Columbian peso. USD declines were exhibited against the Iranian rial and Mexican peso.

U.S. Corn Export Destinations:

Major destinations for U.S. corn are led by Japan, followed by Mexico, South Korea, Columbia, Egypt and China.

Japan accounts for 27% of the USD/Domestic Corn Importer FX Index, followed by Mexico at 24% and South Korea at 12%. Columbia, Egypt and China each account for between 5-10% of the index.

USD/Domestic Corn Importer FX Index:

The USD/Domestic Corn Importer FX Index declined 0.2 points during Aug ’18, finishing at a three month low value of 86.1. The USD/Domestic Corn Importer FX Index remains up 3.3 points throughout the past six months and 55.6 points since the beginning of 2014, however. A strong USD/Domestic Corn Importer FX Index results in less purchasing power for the traditional buyers of U.S. corn (represented in red in the U.S. Corn Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Egyptian pound and Mexican peso has accounted for the majority of the gains since the beginning of 2014.

Appreciation against the USD within the USD/Domestic Corn Importer FX Index during Aug ’18 was led by gains by the Mexican peso. USD gains were exhibited against the Columbian peso, Chinese yuan renminbi, euro and Taiwan new dollar.

Soybeans FX Indices:

The Atten Babler Commodities Soybeans Foreign Exchange (FX) Indices strengthened throughout Aug ’18. The USD/Soybeans Exporter FX Index, USD/Soybeans Importer FX Index and USD/Domestic Soybeans Importer FX Index all increased to new monthly record high values throughout the month.

Global Soybeans Net Trade:

Major net soybeans exporters are led by Brazil, followed by the U.S., Argentina, Paraguay and Canada (represented in green in the chart below). Major net soybeans importers are led by China, followed by the EU-28, Mexico and Japan (represented in red in the chart below).

Brazil and the United States each account for over two fifths of the USD/Soybeans Exporter FX Index, followed by Argentina at 7%.

China accounts for nearly two thirds of the USD/Soybeans Importer FX Index, followed by the EU-28 at 12%.

USD/Soybeans Exporter FX Index:

The USD/Soybeans Exporter FX Index increased 17.9 points during Aug ’18, finishing at a record high value of 265.4. The USD/Soybeans Exporter FX Index has increased 90.0 points throughout the past six months and 212.8 points since the beginning of 2014. A strong USD/Soybeans Exporter FX Index reduces the competitiveness of U.S. soybeans relative to other exporting regions (represented in green in the Global Soybeans Net Trade chart), ultimately resulting in less foreign demand, 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/Soybeans Exporter FX Index during Aug ’18 was led by gains against the Argentine peso, followed by gains against the Brazilian real and Paraguayan guarani. USD declines were exhibited against the Canadian dollar.

USD/Soybeans Importer FX Index:

The USD/Soybeans Importer FX Index increased 4.6 points during Aug ’18, finishing at a record high value of 16.7. The USD/Soybeans Importer FX Index has increased 12.2 points throughout the past six months and 28.9 points since the beginning of 2014. A strong USD/Soybeans Importer FX Index results in less purchasing power for major soybeans importing countries (represented in red in the Global Soybeans Net Trade chart), making U.S. soybeans more expensive to import. USD appreciation against the Turkish lira and Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.

USD appreciation within the USD/Soybeans Importer FX Index during Aug ’18 was led by gains against the Turkish lira, followed by gains against the Chinese yuan renminbi, Russian ruble and euro. USD declines were exhibited against the Mexican peso.

U.S. Soybeans Export Destinations:

Major destinations for U.S. soybeans are led by China, followed by Mexico, Indonesia and Japan.

China accounts for nearly two thirds of the USD/Domestic Soybeans Importer FX Index. Mexico, Indonesia and Japan each account for between 5-10% of the index.

USD/Domestic Soybeans Importer FX Index:

The USD/Domestic Soybeans Importer FX Index increased 3.0 points during Aug ’18, finishing at a record high value of 16.2. The USD/Domestic Soybeans Importer FX Index has increased 9.5 points throughout the past six months and 26.1 points since the beginning of 2014. A strong USD/Domestic Soybeans Importer FX Index results in less purchasing power for the traditional buyers of U.S. soybeans (represented in red in the U.S. Soybeans Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Turkish lira, Chinese yuan renminbi and Mexican peso has accounted for the majority of the gains since the beginning of 2014.

USD appreciation within the USD/Domestic soybeans Importer FX Index during Aug ’18 was led by gains against the Turkish lira, followed by gains against the Chinese yuan renminbi, Russian ruble and Indonesian rupiah. USD declines were exhibited against the Mexican peso.