Foreign exchange rates and the animal protein sector

The value of the U.S. dollar has weakened substantially in the past year and CoBank Knowledge Exchange analysts say they expect it to experience modest deflation in 2021. This may be good news or not-so-good news depending on the commodity. Tariffs and weather conditions in key agricultural producing regions often direct market dynamics despite currency headwinds or tailwinds and should not be discounted, the report said. However, U.S. animal protein exports are expected to benefit this year from a modest tailwind fueled by a weaker U.S. dollar in 2021. Click or tap here to read the full article at Drovers.