Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: United States
Corn+Soybean Digest

Why Such High Export Numbers?

The bustling export business is due largely to the exchange rate, according to Purdue Economist Chris Hurt. “The European euro has increased in value relative to the U.S. dollar by 40%. What that means is that with the same number of euros, Europeans can buy 40% more in the U.S. than they would have been able to buy three or four years ago.

“As an example,” Hurt says, “$12 soybeans in the Midwest are equivalent to $9 to the world at this point. This suggests that the world will not cut back on grain usage as quickly, because as buyers purchase using their own currencies they are not experiencing as high a price as we perceive these prices to be in the U.S.”

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish