Agricultural prices facing more US dollar headwinds

The appreciation of the US dollar since the middle of last year has been a contributing factor in the general decline in agricultural commodity prices. In this Agricultural Commodities Watch we look at the ways in which movements in the dollar can affect commodity prices. We then look at the extent to which the dollar has historically influenced agricultural prices, before finishing with a discussion of some of the reasons underpinning the dollar’s strength and the weakness in other currencies, and our view on what happens next.