Donald Trump won’t be president for another two months. He has yet to implement — or even clearly define — any policy or spending changes. And yet the U.S. dollar index has shot to its highest level in 13 years.
Sentiment in many markets has certainly changed since dropping sharply on election night, even if the market fundamentals and “facts” haven’t, as Jon Driedger of FarmLink Marketing Solutions points out in the interview below (and in this blog post).
“Suddenly what was supposed to be almost a doomsday scenario has markets singing a much different tune here in the early days,” he notes.
The shifting sentiment surrounding the American economy is not only affecting the Canada-U.S. currency relationship, but the depreciation of the Brazilian real relative to the U.S. is suddenly making South American corn and soybeans more competitive to global buyers.
“Now they’re maybe starting to elbow their way back into export sales that traditionally at this time of year would be dominated by the U.S.,” he notes.
What does this mean for Canadian farmers marketing grain as the 2016 harvest window comes to a close? Driedger joined us on RealAg Radio on Thursday to discuss: