Chinese currency shift is good news for US ag - maybe
US - China's announcement of a small change in the way it values its currency, the yuan, could help US ag exports some, but it's not a guaranteed improvement, either. That's the view of Frank Fuller, an international market analyst at the Center for Agricultural and Rural Development (CARD) at Iowa State University."It should give us a little bit of a trade advantage," he told Agriculture Online Thursday. That's because China's currency becomes slightly more expensive related to the dollar, making that country's exports more costly and US food exports into China cheaper.
The US and China compete in some Asian markets, especially corn sold to Japan and South Korea. The shift in currency values may not help the US much there, though, because we've been hit by rising ocean freight costs that still give China an advantage in selling to its neighbors.
Source: agriculture.com
26 July 2005
1 minute read
