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.
Mike Steenhoek, with the Soy Transportation Commission, shares his outlook on current grain stocks and transportation lines amid bumper crops filling bins across the United States.
December 05, 2025 02:18 PM
·
American soybean and corn leaders, along with Canada’s AgriFood sector, testified before the U.S. Trade Representative’s Office in support of the trade pact between the U.S., Mexico, and Canada.
December 05, 2025 12:29 PM
·
The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
December 05, 2025 11:54 AM
·
Working capital is tightening for crop farms, increasing reliance on operating loans even as land values steady in the broader sector.
December 04, 2025 02:59 PM
·
Higher ocean freight raises export costs just as global grain competition intensifies.
December 04, 2025 02:50 PM
·
Rep. Michelle Fischbach shares her appreciation for rural communities and outlines how the Working Families Tax Cut is aimed to support farm families on RFD-TV’s Champions of Rural America.
December 04, 2025 01:31 PM
·
Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
December 04, 2025 01:20 PM
·
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
December 04, 2025 11:02 AM
·
Strong plant output and rising exports contrast with softer domestic blending demand, suggesting margins are poised for volatility.
December 04, 2025 10:43 AM
·
