Since August prices for agricultural fees have risen considerably. Normally that reduces demand and causes a retraction in export sales of Ag products. However, “we haven’t seen them back off the way you might have thought with these rising prices,” noted USDA Chief Economist, Seth Meyer.
He said instead, it’s been an interesting time for global farm trade.
“China comes in to the market, takes bigger volumes, that drives prices higher. That’s higher prices to our other customers and yet in dollar terms they didn’t back off. So even as these prices continue to rise we still continue to do pretty solid export for the rest of the world too.”
USDA, Meyer noted, is projecting record exports this fiscal year. He added something unexpected could happen that could throw a monkey wrench in to things: a trade dispute or a big disease outbreak, but aside from that he expects the remainder of the year to stay strong.
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