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Is the strong Loonie hurting any of our Canadian friends?

nortexsook

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Joined
Nov 21, 2006
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Location
Texas
How much effect does this have on you guys? The Loonie has strengthened tremendously lately. I know in theory this should hurt your exports but wondered on an individual basis if you guys felt it that much?
 
nortexsook said:
How much effect does this have on you guys? The Loonie has strengthened tremendously lately. I know in theory this should hurt your exports but wondered on an individual basis if you guys felt it that much?

Our cattle prices are directly related to the exchange rate. The higher our dollar, the lower our cattle prices are.

Our expenses however do not seem to be connected to the exchange rate, and stay the same.

I don't think that we are hurting too much right now (because of the dollar right now), the dollar was down during the spring run so we had pretty decent prices, and the fall yearling and calf run are still a ways off. If things don't change before fall though, we will be feeling it.
 
Like Randi says it hurts our cattle markets. Cows are cheap up here because of the loonie andwe have more stringent SRM rules. We discard about 120lbs/cow where in the US they discard about 12 lbs/cow. That's hurting.

Our economy would be doing better as we would sell more oil at the cheaper dollar as well. We would probably be OK if it would fluctuate so much but we seem to be playing catch up all the time. :?
 
Our petro buck makes a huge difference. We were nearly totally insulated from the demand decline in the first quarter as our dollar dropped very rapidly. Now that it is higher we are seeing rapidly depressed prices (some other factors at play too).
I think currency speculators may have the greatest effect on the Canadian business of anyone out there, even more than input suppliers. Nothing like a little (or a lot) of volatility to make marketing fun. :lol:
 

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