The U.S. dollar has been losing some strength, which is making the U.S. more competitive in the export market with Brazil and Argentina. These individual country relationships are what drives this competitiveness, according to Alan Brugler, president of Brugler Marketing & Management, LLC.
“We are at a technical support point, and we expect that some of the shorts to take some money off the table,” said Brugler.
This weaker dollar will be playing into the wheat and meat markets, two places where the dollar has its biggest impact.
According to Arlan Suderman, chef commodities economist for INTL FCStone, this was reflected in USDA’s latest meat export report.
“Demand has been supportive,” said Suderman. “We’re starting to find an area where demand is starting to support.”
Hear their full thoughts as well as Don Roose, founder of U.S. Commodities, on protein markets on U.S. Farm Report above.