The strong dollar has been blamed for at least part of the current grain market woes. That’s because international grain buyers can get more bang for their buck by buying grain in countries with relatively weaker currencies.
The phenomenon is perhaps easiest to spot by watching commerce shift back and forth across the U.S./Canada border.
“The Canadian market is kind of screwy now because of the U.S. dollar,” says Scott Brush, territory manager with Kioti. “That’s across the board. Milk, beef, eggs – anything that has to come across the border. It can be hard to compete because of the discrepancy.”
However, the inverse can also be true, and some U.S. farmers have found a unique advantage due to the current currency discrepancy, as Greg Peterson tells AgDay TV.
“If you’re buying a $100,000 or $200,000 item, it’s a good thing to look north,” he says.
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