Search Omemee Pigeon eFlyer
Custom Search

Thursday, May 3, 2012

Strong Canadian Dollar May Harm Ontario Farmers!

Higher Canadian Dollar May Decrease Canadian Exports!


OMAFRA Business Finance Program Lead, Jennifer Stevenson, outlined several reasons the rosy outlook for the Canadian Dollar may cause financial problems for Ontario farmers. According to Stevenson, if US and Canadian dollars appreciate relative to other currencies, it could make our grains and oilseeds more expensive. So what are farmers to do?
'Producers may consider starting to lock in prices opportunistically sooner, rather than later.' advises Stevenson. What do you think? Here is Today's Marketview.

OMAFRA Marketview


Global markets are trading higher this morning as US jobless claims numbers (27,000 fewer Americans filing for unemployment last week rather than an expected increase of 14,000).

The Canadian dollar is trading higher at 1.017, on speculation that North American economies will outpace all other western nations.

Crops:
There are rumours that China is on a buying spree, according to Bloomberg Financial. The USDA daily export report shows that “unknown nations” – widely acknowledged as being code for China - purchased 204,000 tonnes of new crop soybeans and 130,000 tonnes of new crop corn late yesterday.
This may help provide upward momentum to new crop grains and oilseed futures prices, which saw a downturn yesterday because of rumoured increased margin requirements by the Chicago Board of Trade as well as speculative money leaving the commodity sector as the US federal Reserve’s most recent round of quantitative easing is due to expire next month.
Wheat prices are trading higher this morning. Despite potential for the best yields in nine years, potential drought conditions in the US wheat growing areas persist, according to Reuters.

Livestock:
Reuters is reporting that hog prices fell to contract lows yesterday on sluggish demand before May 28 - US Memorial day (when demand is typically high). Also being cited for lower prices in the beef and hog sector are lower grain prices yesterday, as it was viewed as a lowering of feed cost.

Bottom Line for Ontario Farmers:

Given the overall economic climate of North America vs the rest of the world’s grain and oilseed nations in the western world, the risk is that the US and Canadian dollars will appreciate relative to other currencies, making our grains and oilseeds more expensive. Producers may consider starting to lock in prices opportunistically sooner, rather than later.

Disclaimer: This commentary is provided for information only and is not intended as advice.

Jennifer Stevenson
Business Finance Program Lead
Ontario Ministry of Agriculture, Food & Rural Affairs
519-826-4350
jennifer.stevenson@ontario.ca

No comments:

Post a Comment

TERMS OF USE

Those who post comments are accountable for the opinions they express, and the accuracy of the information they furnish. While we encourage writers to utilize this service on our site, we also strongly suggest they treat it as public forum where good taste counts. We reserve the right to decline for approval objectionable material from this site.

Writers that include profanity or personal attacks or other inappropriate comments - such as racist language, threats or comments unrelated to the story - will not be approved. Also, entries that are unsigned or signatures by someone other than the actual writer will not be approved.

While writers can still post anonymously, we strongly suggest that they do not do so.

Opinions, guidance and other information expressed in Omemee Pigeon eFlyer comments and by contributors to the Omemee Pigeon eFlyer, represent the individuals'; own views and are not necessarily those of the Omemee Pigeon eFlyer. The Omemee Pigeon eFlyer furnishes this type of forum and does not endorse and is not accountable for statements or advice from anyone other than an designated Omemee Pigeon eFlyer spokesperson.

F.A.Q.

(Frequently Asked Questions) Choose your favourite and send a letter to the editor. 1. Why isn't this paper being run on a "dot com"? 2. Who is running this paper? 3. Why do you have Google ads on here? 4. Where can I get a print copy of this paper? 5. How can I help make this paper even better? 6.I'd like to buy you a coffee.Where can I send a donation? Thanks! Every bit helps!

Who Reads Omemee Pigeon eFlyer?

You do! Most readers are from our direct area,but people the world over do read Omemee Pigeon eFlyer. We currently have over 2,000 accounts getting our headlines,and almost 100 daily email subscribers. Not bad for a little eZine just starting out. We are especially excited about the writers joining in this project!

Come Tweet Us!

Related Posts Plugin for WordPress, Blogger... Google+