CoBank reposted this
Brazil's currency is causing some major headwinds for U.S. ag commodities. Not only is the U.S. dollar generally strong, but the currency for our major export competitor, Brazil, is weakening (see chart). The USD/BRL exchange rate is now the weakest in two years. This gives Brazilian exports a currency tailwind when competing directly with U.S. commodities: #Soybeans, #corn, #rice, #cotton, and #sugar, to name a few. While each commodity ultimately is traded on its own fundamentals, it's no surprise that prices of each of these commodities Brazil exports have fallen as the BRL has weakened. #grain #oilseeds #agriculture #commodities #OATT CoBank
We don't operate in a vacuum. Global factors play an important role.
Great post for us grain traders.
Very helpful!
Agronomy Business Development
2wThe upcoming BRICS Grain Exchange will also disrupt grain trade with a new trading frontier. Bypassing the dollar and any existing sanctions or rules based order.