http://www.options-trading-education.com/24475/what-does-a-strong-dollar-mean/ What Does a Strong Dollar Mean? The Fed is getting ready to raise interest rates and drive the U. S. dollar higher. One of many places where this is not good news is farm country. What does a strong dollar mean to farmers? It means less money from exports. Farm Futures says that a strong dollar hangs over the market. Storms bypassed the Farm Progress Show site in Boone, Iowa, Monday, but left their mark in the futures trade, when wheat plunged to a new 10-year low, taking corn to new contract lows too. A strong dollar was partly to blame. The greenback is strengthening again this morning, leaving grain futures mixed following a Crop Progress report that showed corn and soybeans still in good shape. Forty percent of world corn exports come from the USA. The USA is the world leader in soybean production at 34% and its leading exporter. The USA produces 8.5% of world wheat and has 15% of exports. The USA is the 4th ranking beef exporter at 11.56% of world market. All of these commodities are sensitive to the value of the US dollar in relation to other currencies. What a strong US dollar means to farmers is fewer exports and lower prices. Oil and the US Dollar When the dollar goes up the price of oil goes down, as valued in dollars. Reuters reports that oil falls on the strong dollar as well as a supply glut.

1. By www.Options-Trading-Education.com

2. The Fed is getting ready to raise
interest rates and drive the U. S.
dollar higher.

3. One of many places where this is
not good news is farm country.

4. Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

5. What does a strong dollar mean to
farmers?

6. It means less money from
exports.

7. Farm Futures says that a strong
dollar hangs over the market.

8. Storms bypassed the Farm
Progress Show site in Boone, Iowa,
Monday, but left their mark in the
futures trade, when wheat
plunged to a new 10-year low,
taking corn to new contract lows
too.

9. A strong dollar was partly to
blame.

10. The greenback is strengthening
again this morning, leaving grain
futures mixed following a Crop
Progress report that showed corn
and soybeans still in good shape.

11. Forty percent of world corn
exports come from the USA.

12. The USA is the world leader in
soybean production at 34% and its
leading exporter.

13. The USA produces 8.5% of world
wheat and has 15% of exports.

14. The USA is the 4th ranking beef
exporter at 11.56% of world
market.

15. All of these commodities are
sensitive to the value of the US
dollar in relation to other
currencies.

16. What a strong US dollar means to
farmers is fewer exports and
lower prices.

17. Oil and the US Dollar

18. When the dollar goes up the price
of oil goes down, as valued in
dollars.

19. Reuters reports that oil falls on
the strong dollar as well as a
supply glut.

20. Oil prices fell Tuesday, with Brent
losing nearly 2 percent, as the
dollar rallied and glut worries
grew amid forecasts for higher
U.S. crude stockpiles and Iran’s
remark that it was on target to
reach peak production.

21. Farm products and oil are
commodities.

22. How about what a strong dollar
means for industry?

23. US Manufacturing

24. Manufacturing and exports have
steadily grown since the depths of
the Great Recession.

25. Market Realist reports that
the August manufacturing
PMI slide a bit from 52.7 to 52.1.
This is down from 54 a year ago.

26. According to a report by Markit
Economics, the flash US
manufacturing PMI (purchasing
managers’ index) stood at 52.1 in
August compared to 52.9 in July.

27. It’s below market expectations of
52.7.

28. The subdued performance is
mainly due to the fall in new
orders growth.

29. A strong dollar can be a problem
for U.S. exporters because it
makes their products less price
competitive.

30. The bright side for US
manufacturing is that nations like
Japan, South Korea, China and
Taiwan are seeing wage inflation
at a higher rate than the USA so
their manufacturing costs are up
as well.

31. When the Fed raises interest rates
in an attempt to stave off inflation
the dollar goes up and exports or
profits from exports go down.

32. To a degree this is the point of
raising rates, to cool off the
economy.

33. If the Fed does its job well a
strong dollar will not get too
strong and plummet to a weak
dollar which would expose US
based assets to foreign poaching.