According to Bloomberg on the 11th, United Bank, which provides financing for American agriculture and rural enterprises, released a report on the same day stating that the combination of high interest rates and a strong US dollar is causing "disproportionate damage" to the rural economy of the United States, with grain exports falling by 20% this year.
The report states that the combination of high borrowing costs and a strong US dollar is equivalent to a "series of punches", which damages the competitiveness of US agricultural exports and collectively causes disproportionate damage to rural industries such as agricultural products, forest products, mining, and manufacturing. The report shows that global buyers' interest in purchasing US grains is "severely limited" by the appreciation of the US dollar, high shipping costs, and competition from South American suppliers; The decline in cotton production in the United States, coupled with rising interest rates and inflation, has also weakened cotton exports and consumer purchasing interest.
The Bloomberg US dollar spot index rose to its highest level in nearly a year earlier this month. The strengthening of the US dollar, coupled with export competition from global competitors, has led to a decrease in the attractiveness of US grains. According to export inspection data from the United States Department of Agriculture, the shipment volume of corn, soybeans, and wheat in the United States has decreased by approximately 20% compared to the same period in 2022.