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November 15, 2016

Rabobank: Trumps Election Means Short-Term Market Volatility

 |  By: Jim Dickrell


In a report released this morning, Rabobank says the election of Donald Trump means more short-term market volatility.

Short-term, agricultural markets may be affected by foreign exchange and currency volatility, uncertainty in the business climate and consumer confidence, say Rabobank officials.

“Currently, the export share of U.S. agricultural production represents 20% in volume and value terms, making U.S. price formation highly dependent on foreign trade and therefore foreign currency,”  says Pablo Sherwell, head of Rabobank’s North American Food and Agribusiness Research and Advisory group.

Trade agreements, ag policy and labor policy all could have longer-term policy implications, he says. Most notably, Rabobank says the U.S. dairy industry might benefit if relations with Russia improve and Russia lifts its ban of U.S. dairy products.  Read the full report here.