High US dollar

High US dollar

David Sparks Ph.D.
David Sparks Ph.D.
US dollar at 20 year high pulls grain prices lower. That's one of several similar market news headlines we've seen recently. We caught USDA's chief economist Seth Meyer and we asked him about the situation and he says a stronger dollar against the currencies of other countries, not very good news for U.S. farmers and grain marketers who depend on exporting their products. Meyer: The strength in the dollar makes those commodities look more expensive to all of our customers. So you see a strong dollar being transmitted into higher domestic prices for everybody we want to trade with. So it tends to tamper down foreign demand because of those seeming high prices in their own currency. Speaker1: And indeed this week for that reason and some others, USDA projecting that in this next marketing year, export volumes of U.S. wheat, rice, corn, soybeans, cotton, beef and pork all will be down from this current year. Speaker2: The strength in the dollar tends to tamper down foreign demand because of those seeming high prices in their own currency. I think it's also a food security issue for many of the countries that are most vulnerable seeing their currency weaken against the dollar and the dollar is quite strong relative to where it was back in 2008, 2010, when we had similar high commodity prices.
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