U.S. grain farmers are ending the year on a strong note. Tanner Ehmke, manager of CoBank’s Knowledge Exchange, expects that momentum to carry into much of 2021.
“We have La Nina which is stressing the South American prospects there for their corn and soybean crops. At the same time, the Russians are dealing with food inflation and putting in export limitations and they have crop concerns and that’s going to elevate wheat.”
Ehmke says the U.S. has picked up a lot of export business, in part, because of the weakening U.S. dollar.
“There’s one estimate out there – I think it’s from CitiBank. They’re projecting the U.S. dollar to drop 20% next year which is extremely bullish. Now, whether that happens or not, we’ll see.”
Ehmke says a weakening dollar would be very bullish for U.S. grain exports.