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Brexit vote likely will impact US ag exports

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A livestock marketing specialist says the UK’s vote last week to leave the European Union could have some serious impacts on US ag exports.

University of Missouri’s Scott Brown says the agriculture industry needs strong exports across all commodities.  “Given that we’re increasing domestic supplies in almost every case of ag commodities in this country, we tend to see people finding the dollar as a safe haven in these periods of uncertainty,” he says.  “That only means the dollar is going to strengthen for us against a number of currencies.”

He tells Brownfield a stronger dollar makes US agriculture less competitive in the global marketplace.  “And that is unfortunately coming at the wrong time for us,” he says.

Brown says not only are US goods more expensive to consumers in other countries, US agriculture doesn’t compete as well against goods from other countries.  “Not really good news given all we’ve talked about us needing increased export strength as we look ahead,” he says.

Brown says volatility in the markets is likely to continue in the short term while it continues to digest last week’s vote.

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