A recent report shows that the weaker U.S. dollar will benefit some ag commodities but could create issues for others. In general, American ag products are more competitive in the global market when the U.S. dollar is weaker. A new report from CoBank’s Knowledge Exchange highlights a weak U.S. dollar being one of the driving factors for the expected increase in ag exports this year.
Animal protein exports are expected to do well in 2021, with beef and pork being the largest beneficiaries of a weaker U.S. dollar. With U.S. cotton heavily dependent on export markets, the industry could encounter some challenges in 2021 as number-two exporter Brazil sees its currency weaken. The weaker U.S. dollar also presents positive opportunity for almonds and walnuts in key export markets. However, currency weakness in Iran could prove to be problematic for American pistachio exports.
Listen to the radio report below.
