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.
Despite China’s sharp drop in grain purchases this year, new USDA export data this week shows that even some buying activity from the trade giant still moves the markets.
December 16, 2025 12:20 PM
·
Corn and wheat exports remain supportive, but weaker soybean demand — especially from China — continues to pressure oilseed markets.
December 16, 2025 12:08 PM
·
Tim and Sharyn Abbott of the Music City Celebration Sale recap the weekend’s premier auction, which drew top dairy breeders and buyers to Nashville again this year from across North America.
December 16, 2025 11:54 AM
·
China’s pullback is hitting core U.S. commodities hard, reshaping export expectations for soybeans, cotton, grains, and livestock.
December 16, 2025 07:00 AM
·
Slower grain movement may pressure basis, but falling diesel prices could help offset transportation costs.
December 16, 2025 06:00 AM
·
Fertilizer markets face uncertainty after President Trump raised the possibility of tariffs on Canadian imports, with analysts warning of supply and pricing risks. Josh Linville with StoneX provides a fertilizer industry outlook.
December 15, 2025 01:35 PM
·
Regional differences indicate that family ownership is universal, but farm structure and commodity mix determine the extent to which these operations drive agricultural output.
December 15, 2025 01:03 PM
·
A new study found that retaining the EPA’s half-RIN credit protects soybean demand, farm income, and crushing-sector strength while preserving biofuel market flexibility.
December 15, 2025 12:15 PM
·
The U.S. has a bountiful corn supply, but markets are waiting for the January WASDE Report, which will include updated yield estimates.
December 15, 2025 11:34 AM
·
