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The Impact of Brazil and Argentina's Currency Devaluation on U.S. Soybean Trade

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  • Andino, Jose
  • Mulik, Kranti
  • Koo, Won W.

Abstract

We analyzed the effects of Brazil and Argentina's currency devaluation on the U.S. soybean import demand in major importing countries. Results indicate that nominal exchange rates between the United States and importers affect the U.S. soybean export market. Additionally, we found evidence that currency depreciations have favored soybean exports from Argentina and Brazil at the cost of reduced exports from the United States. Increased world soybean demand has promoted export sales from major producers, affecting export prices. Adoption of GM soybeans in the United States has been a determinant in decreased U.S. soybean import demand.

Suggested Citation

  • Andino, Jose & Mulik, Kranti & Koo, Won W., 2006. "The Impact of Brazil and Argentina's Currency Devaluation on U.S. Soybean Trade," 2006 Annual meeting, July 23-26, Long Beach, CA 21450, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21450
    DOI: 10.22004/ag.econ.21450
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    1. Gary W. Williams & Ji Luo, 2017. "Exchange Rate Policy and Global Supply Chains: The Case of the Chinese Renminbi and Global Soybean and Soybean Product Markets," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 177-198.
    2. Julien Milanesi & Marion Desquilbet & E. Luch & R. Rocha de Santos, 2009. "Current and future availability of non-genetically modified soybean seeds in the U.S., Brazil and Argentina," Working Papers hal-02285602, HAL.
    3. Chen, Wei & Marchant, Mary A. & Song, Baohui, 2009. "Impacts of China's Food Consumption on U.S. Soybean Exports," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46820, Southern Agricultural Economics Association.
    4. Ridley, William & Devadoss, Stephen, 2015. "Argentina's Agricultural Policies," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205421, Agricultural and Applied Economics Association.

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