The Atten Babler Commodities Meat Foreign Exchange (FX) Indices strengthened throughout Nov ’21. The USD/Meat Exporter FX Index increased to an 18 month high level while the USD/Domestic Meat Importer FX Index and USD/Meat Importer FX Index increased to 14 and 17 month high levels, respectively, throughout the month.

Global Meat Net Trade:

Major net meat exporters are led by the U.S., followed by Brazil, the EU-28, India, Canada and Australia (represented in green in the chart below). Major net meat importers are led by Japan, followed by Russia, Mexico, the U.S., China, the EU-28, Hong Kong and Saudi Arabia (represented in red in the chart below).

The United States accounts for over a quarter of the USD/Meat Exporter FX Index, followed by Brazil at 22% and the EU-28 at 14%. India, Canada and Australia each account for between 5-10% of the index.

Japan accounts for 14% of the USD/Meat Importer FX Index, followed by Russia at 12%. Mexico, the United States, China, the EU-28, Hong Kong and Saudi Arabia each account for between 5-10% of the index.

USD/Meat Exporter FX Index:

The USD/Meat Exporter FX Index increased 1.1 points throughout Nov ’21, finishing at an 18 month high value of 158.9. The USD/Meat Exporter FX Index has increased 5.3 points throughout the past six months and 50.1 points since the beginning of 2014. A strong USD/Meat Exporter FX Index reduces the competitiveness of U.S. meat relative to other exporting regions (represented in green in the Global Meat 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.

USD appreciation within the USD/Meat Exporter FX Index during Nov ’21 was led by gains against the euro, followed by gains against the Turkish lira, Brazilian real, Australian dollar and Canadian dollar.

USD/Meat Importer FX Index:

The USD/Meat Importer FX Index increased 1.1 points throughout Nov ’21, finishing at a 17 month high value of 157.0. The USD/Meat Importer FX Index has increased 2.8 points throughout the past six months and 41.1 points since the beginning of 2014. A strong USD/Meat Importer FX Index results in less purchasing power for major meat importing countries (represented in red in the Global Meat Net Trade chart), making U.S. meat more expensive to import. USD appreciation against the Russian ruble and Mexican peso has accounted for the majority of the gains since the beginning of 2014.

USD appreciation within the USD/Meat Importer FX Index during Nov ’21 was led by gains against the Russian ruble, followed by gains against the Mexican peso, Japanese yen, South African rand and euro.

U.S. Meat Export Destinations:

Major destinations for U.S. meat exports are led by Mexico, followed by Japan, China, Canada, and Hong Kong.

Mexico accounts for over a quarter of the USD/Domestic Meat Importer FX Index, followed by Japan at 11%. China, Canada and Hong Kong each account for between 5-10% of the index.

USD/Domestic Meat Importer FX Index:

The USD/Domestic Meat Importer FX Index increased 1.5 points throughout Nov ’21, finishing at a 14 month high value of 166.6. The USD/Domestic Meat Importer FX Index has increased 4.0 points throughout the past six months and 49.2 points since the beginning of 2014. A strong USD/Domestic Meat Importer FX Index results in less purchasing power for the traditional buyers of U.S. meat (represented in red in the U.S. Meat Export Destinations chart), ultimately resulting in less foreign demand, all other factors being equal. USD appreciation against the Mexican peso has accounted for the majority of the gains since the beginning of 2014.

USD appreciation within the USD/Domestic Meat Importer FX Index during Nov ’21 was led by gains against the Mexican peso, followed by gains against the Turkish lira, Russian ruble, Japanese yen and Canadian dollar.