Global oversupply and a strong dollar affect U.S. agricultural exports
Demand for U.S. agricultural exports is suffering due to a global supply glut and a strong U.S. dollar.
CoBank economist Tanner Ehmke says there is a global grain glut.
“South America has record corn and soybean harvests. Record grain harvests in the Black Sea region. To top it all off, we have a strong dollar.”
He said domestic demand, especially for soybean oil, has helped support commodity prices.
“But the fact of the matter is that there is still a glut of agricultural commodities, so there is a slight downturn in the ag sector, while prices for all other commodities are going up.”
Emke said U.S. consumers continue to spend money despite inflationary pressures, which keeps the value of the dollar high.
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