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Higher interest rates to impact U.S. exports

The Federal Reserve’s increase in interest rates has boosted the dollar, which will have an impact on exports.

Garrett Toay, owner of Ag Trader Talk, tells Brownfield that hike in interest rates and surge in the dollar to near 20-year highs will likely lead to demand rationing on the export market, “Potentially, prices are doing some of the work now, because of the expensiveness of grains, at least corn, soybeans are still competitive versus South American offers just because of seasonality, but we’re going to try to test this market and see how far we can get to slow down these exports considerably.”

Toay expects the Federal Reserve to raise rates again this year as a part of their efforts to curb inflation.