Winnipeg/Commodity News Service Canada – The effects of a strong U.S. dollar and resulting weaker domestic currencies are improving the bottom line for farmers in many parts of the world, according to a speaker at the Cereals of North America conference in Winnipeg, Nov. 3.
Pedro Dejneka, the executive director of Ag Resource’s Latin America division, said the sharp rise in the U.S. dollar has benefited many farmers in Brazil.
He said the Brazilian Real has lost 50 per cent of its value relative to the U.S. dollar this year. In August they received more in Reals than at the height of the 2012 U.S. drought, when soybeans topped out at US$17.98 a bushel.
He suspects the windfall Brazilian growers are enjoying is likely also being felt by growers in Russia and Ukraine, where the currencies have also declined sharply against the U.S. dollar.
Dejneka estimated that soybean planting in Brazil could increase by 20 per cent next year.