Cash Strategist 8/17/2022
Author
Published
8/18/2022
U.S. grain and meat Exports Slowing
One of the biggest questions in the market right now is the level of commodity demand we will see for the remainder of the marketing year.Importers were actively securing coverage earlier this year but have gradually slowed their purchases in recent weeks. One reason for this is slowing demand as a whole, but also due to the strong value of the U.S. dollar.
When the dollar rallies, it makes U.S. products more expensive for an importer, even if the commodity itself is showing a lower cost than from a competitor. Until the U.S. dollar corrects, we may struggle to make sizable exports.
We are now at a stage where the trade is starting to evaluate the volume of unshipped commodity sales on the books and if they will be shipped this...
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