News
Global surplus, strong Dollar weighs on US ag exports
US ag export demand is suffering from excess global supplies and a strong US dollar.
CoBank economist Tanner Ehmke says there is a surplus of grain globally.
“You’ve got record crops down in South America, corn and beans. You’ve got record crops in the Black Sea (region) with Russia. And then we have a strong Dollar on top of all that.”
He says Brownfield domestic demand, especially for soybean oil, has helped support commodity prices.
“But the fact is we’re still in a world with a surplus of agricultural commodities, so as a result that’s why we’ve seen the ag sector see a bit of a dislocation when all these other commodities are going up.”
Ehmke says US consumers continue to spend despite inflationary pressure, which is keeping the value of the dollar elevated.
Tags: Black Sea, CoBank, commodity prices, Corn, Crops, currency, dollar, Exports, Farm Income/Prices, grains/oil seeds, inflation, Russia, South America, Soybeans, Trade, Wheat
