Loading…
The Richmond Fed explains that the U.S. dollar has appreciated about 11.4% year-over-year against a broad basket of currencies, reaching its strongest level since 1985. Rising U.S. interest rates and flight-to-safety flows following Russia's invasion of Ukraine are cited as drivers.
A stronger dollar makes U.S. exports such as grains and feed ingredients more expensive for foreign buyers, which can soften demand and pressure dollar-denominated feed commodity prices.
richmondfed.orgJohn O'TrakounOct 18, 2022After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
