NASHVILLE, TENN. (RFD NEWS) — A softer U.S. dollar is improving export competitiveness for American crops, offering potential price support without requiring lower farm-gate bids, according to economists with Texas A&M AgriLife Extension.
Because most global agricultural commodities are priced in dollars, exchange rates directly affect foreign buying power. When the dollar weakens, overseas buyers can purchase more U.S. grain and fiber using their local currency, often strengthening export demand and supporting domestic prices. The opposite occurs during a strong-dollar environment, which tends to slow export movement and pressure bids.
Farm-Level Takeaway: A weaker dollar supports export demand and may strengthen crop prices.
Tony St. James, RFD NEWS Markets Specialist
During 2025, currency trends shifted in agriculture’s favor. The broad U.S. dollar index fell 7.2 percent after rising the previous year, while key customer currencies strengthened, including the euro and the Mexican peso. Brazil’s real also appreciated, potentially limiting Brazil’s ability to undercut U.S. offers in global markets.
Research shows even small currency moves matter. A one-percent decline in the dollar has historically been associated with roughly a half-percent increase in the value of U.S. agricultural exports.
Benefits, however, do not appear instantly. Exchange-rate effects filter unevenly into basis and contracts depending on timing and location.
The National Milk Producers Federation will launch a new advocacy campaign to secure a final vote, urging House lawmakers to approve the bill as soon as they return from the Thanksgiving recess.
November 25, 2025 01:09 PM
·
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
November 25, 2025 12:40 PM
·
Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
November 25, 2025 12:05 PM
·
A regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture, prepared by RFD-TV Markets Specialist Tony St. James, for the week of Monday, November 24, 2025.
November 24, 2025 02:56 PM
·
Farmers with unpaid Hansen-Mueller grain should verify delivery records immediately and file indemnity claims quickly, as coverage rules differ sharply by state.
November 24, 2025 02:32 PM
·
Shaun Haney, host of RealAg Radio, provides the latest insight into the timing, expectations, and broader considerations of the potential aid package, despite increasing exports to China.
November 24, 2025 12:42 PM
·
