Atten Babler Corn & Soybeans FX Indices – Jan…
Corn FX Indices:
The Atten Babler Commodities Corn Foreign Exchange (FX) Indices continued to weaken throughout Dec ’20. The USD/Corn Exporter FX Index declined to a four month low level while the USD/Corn Importer FX Index and USD/Domestic Corn Importer FX Index each declined to 31 month low levels 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 declined 3.0 points throughout Dec ’20, finishing at a four month low value of 274.1. The USD/Corn Exporter FX Index remains up 5.8 points throughout the past six months and 131.6 points since the beginning of 2014, despite the most recent decline. 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 and Ukrainian hryvnia has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Corn Exporter FX Index during Dec ’20 was led by gains by the Brazilian real, followed by gains by the Ukrainian hryvnia, Russian ruble and South African rand. USD gains were exhibited against the Argentine peso.
USD/Corn Importer FX Index:
The USD/Corn Importer FX Index declined 2.3 points throughout Dec ’20, finishing at a 31 month low value of 164.1. The USD/Corn Importer FX Index has declined 8.1 points throughout the past six months but remains up 37.1 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 Egyptian pound, 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/Corn Importer FX Index during Dec ’20 was led by gains by the euro, followed by gains by the Mexican peso, Columbian peso, South Korean won and Japanese yen.
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 2.3 points throughout Dec ’20, finishing at a 31 month low value of 143.3. The USD/Domestic Corn Importer FX Index has declined 9.1 points throughout the past six months but remains up 29.7 points since the beginning of 2014. 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 Mexican peso and 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 Dec ’20 was led by gains by the Mexican peso, followed by gains by the Columbian peso, Japanese yen, South Korean won and euro.
Soybeans FX Indices:
The Atten Babler Commodities Soybeans Foreign Exchange (FX) Indices also weakened throughout Dec ’20. The USD/Soybeans Exporter FX Index declined to a six month low level throughout the month while the USD/Soybean Importer FX Index and USD/Domestic Soybean Importer FX Index each declined to 30 month low levels.
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 declined 5.1 points throughout Dec ’20, finishing at a six month low value of 223.3. USD/Soybeans Exporter FX Index remains up 2.1 points throughout the past six months and 94.9 points since the beginning of 2014, despite the most recent decline. 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 Brazilian real has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Soybeans Exporter FX Index during Dec ’20 was led by gains by the Brazilian real, followed by gains by the Canadian dollar and Paraguayan guarani. USD gains were exhibited against the Argentine peso.
USD/Soybeans Importer FX Index:
The USD/Soybeans Importer FX Index declined 1.2 points during Dec ’20, finishing at a 30 month low value of 94.1. The USD/Soybeans Importer FX Index has declined 6.6 points throughout the past six months but remains up 11.3 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 Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Soybeans Importer FX Index during Dec ’20 was led by gains by the Chinese yuan renminbi, followed by gains by the euro, Mexican peso, Russian ruble and Turkish lira.
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 declined 1.2 points throughout Dec ’20, finishing at a 30 month low value of 97.3. The USD/Domestic Soybeans Importer FX Index has declined 7.1 points throughout the past six months but remains up 11.8 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 Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Soybeans Importer FX Index during Dec ’20 was led by gains by the Chinese yuan renminbi, followed by gains by the Mexican peso, euro, Russian ruble and Taiwan new dollar.
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 declined 3.0 points throughout Dec ’20, finishing at a four month low value of 274.1. The USD/Corn Exporter FX Index remains up 5.8 points throughout the past six months and 131.6 points since the beginning of 2014, despite the most recent decline. 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 and Ukrainian hryvnia has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Corn Exporter FX Index during Dec ’20 was led by gains by the Brazilian real, followed by gains by the Ukrainian hryvnia, Russian ruble and South African rand. USD gains were exhibited against the Argentine peso.
USD/Corn Importer FX Index:
The USD/Corn Importer FX Index declined 2.3 points throughout Dec ’20, finishing at a 31 month low value of 164.1. The USD/Corn Importer FX Index has declined 8.1 points throughout the past six months but remains up 37.1 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 Egyptian pound, 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/Corn Importer FX Index during Dec ’20 was led by gains by the euro, followed by gains by the Mexican peso, Columbian peso, South Korean won and Japanese yen.
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 2.3 points throughout Dec ’20, finishing at a 31 month low value of 143.3. The USD/Domestic Corn Importer FX Index has declined 9.1 points throughout the past six months but remains up 29.7 points since the beginning of 2014. 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 Mexican peso and 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 Dec ’20 was led by gains by the Mexican peso, followed by gains by the Columbian peso, Japanese yen, South Korean won and euro.
Soybeans FX Indices:
The Atten Babler Commodities Soybeans Foreign Exchange (FX) Indices also weakened throughout Dec ’20. The USD/Soybeans Exporter FX Index declined to a six month low level throughout the month while the USD/Soybean Importer FX Index and USD/Domestic Soybean Importer FX Index each declined to 30 month low levels.
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 declined 5.1 points throughout Dec ’20, finishing at a six month low value of 223.3. USD/Soybeans Exporter FX Index remains up 2.1 points throughout the past six months and 94.9 points since the beginning of 2014, despite the most recent decline. 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 Brazilian real has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Soybeans Exporter FX Index during Dec ’20 was led by gains by the Brazilian real, followed by gains by the Canadian dollar and Paraguayan guarani. USD gains were exhibited against the Argentine peso.
USD/Soybeans Importer FX Index:
The USD/Soybeans Importer FX Index declined 1.2 points during Dec ’20, finishing at a 30 month low value of 94.1. The USD/Soybeans Importer FX Index has declined 6.6 points throughout the past six months but remains up 11.3 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 Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Soybeans Importer FX Index during Dec ’20 was led by gains by the Chinese yuan renminbi, followed by gains by the euro, Mexican peso, Russian ruble and Turkish lira.
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 declined 1.2 points throughout Dec ’20, finishing at a 30 month low value of 97.3. The USD/Domestic Soybeans Importer FX Index has declined 7.1 points throughout the past six months but remains up 11.8 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 Chinese yuan renminbi has accounted for the majority of the gains since the beginning of 2014.
Appreciation against the USD within the USD/Domestic Soybeans Importer FX Index during Dec ’20 was led by gains by the Chinese yuan renminbi, followed by gains by the Mexican peso, euro, Russian ruble and Taiwan new dollar.