The falling value of the U.S. dollar relative to other global currencies is good news for farmers and producers, says Craig VanDyke, Top Third Ag Marketing.
“We’ve seen the dollar find some declines here over the past couple of months,” VanDyke tells “AgDay” Agribusiness Update host Tyne Morgan. “Obviously, it varies between each individual currency globally that has major export-import markets and ag commodities. Overall, the strength in the Brazilian real recently is something to note as well.”
Going forward, it’s unlikely the Federal Reserve will raise interest rates in the near term, another positive sign for U.S. producers and people buying American farm products.
“The market data continues to say that we’re shaky, we’re nervous, we’re not seeing everything we want to see,” VanDyke explains. “The Fed is so skittish that we might not see that dollar turn back around here until there’s real signs of potential of the Fed actually raising rates.”
For example, the U.S. dollar “got slammed on a poor jobs number [for the week ending June 4], down 1.5% to end the week,” VanDyke points out.
Click the play button below to watch the complete “AgDay” interview with VanDyke.