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Weakening U.S. dollar a positive for US exports

Ag economist Ben Brown with the University of Missouri says the weakening U.S. dollar could have a positive impact on ag exports.

“We as consumers love a strong dollar. It makes our buying power even much more so. We can buy more product with the same amount of dollars. However, when it comes to the export market it’s not just the challenge of selling the good, it’s also the signal it sends to other consumers and producers around the world.”

He tells Brownfield the Mexican peso and Brazilian real have seen some gains against the U.S. dollar. “When your currency is cheap relative to somebody else, it makes your product that much more attractive to buy.”

Brown says weaker economic data, rising jobless claims, and newly imposed tariffs on trading partners helped weaken the dollar.

He made his comments on Brownfield’s Weekly Commodity Market Update, which can be viewed below.