USA: rising dollar worries traders


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Overnight the US dollar index reached 114.7 and Al Kluis of Kluis Commodity Advisors says this is the highest value of the US dollar since 2002 and in the last 12 months the dollar has risen by almost 25%. The information is from agriculture.com and was released this morning (28/09).

The higher dollar makes American commodities more expensive for other countries. Naomi Blohm of Total Farm Marketing says that normally when the dollar gets so high, other countries can offer a cheaper offer. However, she says it is a challenge this year as supply is in short supply across the world.

Currently, the US dollar index is at 114.6. In the grains market, corn is down less than a cent and is at its current peak for overnight trading at US$ 6.67. Soybeans peaked overnight at US$ 14.06. They are currently down to US$ 14.03. CBOT wheat rose 9 cents to US$ 8.82.

Yesterday, United States Department of Agriculture (USDA) Secretary Tom Vilsack announced that the agency is making available US$500 million in grants to increase fertilizers manufactured in the United States.

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“Under the leadership of President Biden and Vice President Harris, USDA is creating a resilient, safe and sustainable economy, and this support to provide domestic, independent choices for fertilizer supplies is part of that effort,” says Vilsack in a statement announcing the program.

The Fertilizer Production Expansion Program was originally announced in March with US$ 250 million in funding. In the following months, fertilizer prices soared and the agricultural industry was not shy about sharing its frustration.

By: Leonardo Gottems | agrolink

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