# Dollar strength creates headwinds - Dakota Midland Grain

> The Congressional Budget Office projected U.S. GDP could plunge 40% in the second quarter of 2020 with unemployment possibly staying in double digits into 2021. The dollar has risen to record highs against a basket of 26 trading partners, up 8% year to date, while emerging market currencies lost about 12% on average.

- Date: 2020-04-28 · published 2020-04-28T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/53683-dollar-strength-creates-headwinds-dakota-midland-grain
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A stronger dollar makes U.S. commodities more expensive for foreign buyers, tending to weigh on U.S. crop prices while lifting farmers' local-currency returns abroad, especially in competing exporters.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- CORN: bearish ▼
- WHEAT: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2022-07-12 | [Dollar rises to 20-year highs, sends grains lower – The Seam](https://feedsoft.ai/events/5974-dollar-rises-to-20-year-highs-sends-grains-lower-the-seam.md) | +7.2% | +7.0% |
| WHEAT | 2020-06-04 | [Feedgrain Focus: Stronger Aussie dollar pressures prices - Grain Central](https://feedsoft.ai/events/9491-feedgrain-focus-stronger-aussie-dollar-pressures-prices-grain-central.md) | -0.0% | +1.3% |
| WHEAT | 2017-10-27 | [U.S. grains: Wheat futures sink as dollar rallies - Grainews](https://feedsoft.ai/events/68496-u-s-grains-wheat-futures-sink-as-dollar-rallies-grainews.md) | -4.0% | -5.9% |
| WHEAT | 2018-06-25 | [COT Dollar strength and trade fears trigger big changes across forex and commodities \| Saxo](https://feedsoft.ai/events/11644-cot-dollar-strength-and-trade-fears-trigger-big-changes-across-forex-and.md) | -0.0% | -0.6% |
| WHEAT | 2026-03-20 | [Grains, oilseeds lower as dollar rises \| MarketScreener](https://feedsoft.ai/events/11694-grains-oilseeds-lower-as-dollar-rises-marketscreener.md) | -0.1% | +1.1% |
| SOY | 2019-04-25 | [Strong dollar punishes grain prices](https://feedsoft.ai/events/7595-strong-dollar-punishes-grain-prices.md) | -1.8% | -3.1% |
| SOY | 2022-04-01 | [Strong Dollar's Impact on Grain Exports](https://feedsoft.ai/events/42202-strong-dollar-s-impact-on-grain-exports.md) | +1.7% | +5.6% |
| SOY | 2022-07-12 | [Dollar rises to 20-year highs, sends grains lower – The Seam](https://feedsoft.ai/events/5974-dollar-rises-to-20-year-highs-sends-grains-lower-the-seam.md) | -8.8% | -1.3% |

## Sources

- dakotamidland.com: https://www.dakotamidland.com/story-dollar-strength-creates-headwinds-22-202199
- farmprogress.com: https://www.farmprogress.com/corn/dollar-strength-creates-headwinds

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.