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Abstract
The linkage between macroeconomic policies and agricultural commodity trade has
become an important research issue of agricultural economists. This paper investigates the
macroeconomic linkage of soybean trade competition between the exporting countries of
the United States, Brazil, and Argentina in the EC-12 and Japan import markets. It is
argued that U.S. monetary growth may have important impacts on the competitive position
of U.S. soybean exports through exchange rates. Two relationships are investigated: (a) the
effects of U.S. monetary growth on the agricultural trade weighted exchange rates, and (b)
the responsiveness of agricultural commodity prices and U.S. exports to exchange rate
movements. Results indicate that a weak dollar increases imports of soybeans and soymeal
significantly which serves to increase the equilibrium world price and increase both U.S. and
Brazilj Argentina exports in the long run. However, during periods of more expansionary
U.S. monetary policy there is little evidence of significant increases in market share position
for U.S. soybeans and soymeal in world markets.