One might question how COVID-19 and U.S. Soy exports are related. For many, this might be a far stretch, but not for Will Sawyer, an economist with CoBank Knowledge Exchange.
While coronavirus continues to grow around the world, especially in the United States, some areas of the world appear to have gotten it contained.
While those economic forecasts look much brighter, unfortunately, we can not say that for the United States.
“All of this — gloomy economic outlook, increase in liquidity, political gridlock, 2020 election — all this uncertainty has created a depressing outlook for the U.S. dollar,” Sawyer said during his presentation that was part of the opening session of the U.S. Soy Global Trade Exchange and Specialty Grains Conference. “Some economists even have a 30% drop in the value of the U.S. dollar.
“Therefore, it stands to reason if we have a weakening of the U.S. dollar, it means we could have a more bullish outlook on soybean exports and soybean prices.”
Read the full report at USSEC.org.
