Canadian $ Showing Strength

[errolanderson]

Just a heads up . . . The loonie may gain further strength into the summer market.Technically, our dollar broke technically higher this week led by the recovery in WTI crude and bounce back in Alberta bitumen (WCS) oil prices. Also, the US dollar has come off recent highs providing a boost to alternate currencies.

The Sept Cdn now has resistance @ 73 cents, but a further breakout would suggest a possible move toward heavy resistance @ 74.50 cents U.S. Note: Currency markets are difficult to forecast at the best of times.

[errolanderson]

Hedgers note: Sept Cdn now approaching heavy resistance @ 74.50 cents U.S.

[errolanderson]

Cattle feeders . . . quick update on our dollar . . . Fed chair Powell announced at noon, June 10 that their key lending rate will stay @ 0.00% for the foreseeable future. In fact, Fed does not expect any rate comeback until possibly 2022. The U.S. dollar dove on this news, stock markets rallied . . . the loonie was bought immediately. The Cdn dollar surged above 75 cents U.S. today. The NASDAQ is now at record highs despite the U.S. economy now entering a recession.

These recent U.S. Fed comments suggest possible further upside for the Cdn dollar. The USD may fall further. Gold is a wild card. Near-term up on investor fear, then sharp sell-downs on deflationary pressures.

As the business cycle falters, central bankers are panicked printing massive currency creating helicopter money and artificial stock market stimulus. Strange and manipulated economics at-their-best . . . .

[errolanderson]

Quick loonie update . . . . BOC holding key lending rate @ 0.25% (July 15th). Cdn dollar pushing toward 74 cents. Trend remains up (in our view) due to weakness in USD.

Chart technicals for what-it's-worth . . . . December Cdn resistance seen @ 75.25 cents with heavy resistance now seen @ 76.75 cents. Note: Currencies are a moving target . . . .

[errolanderson]

Group, hope you don’t mind my blithering currency comments . . . .

Cdn dollar broke into a higher range today given continued USD weakness. We are now sensing a 75 to 77 cent range for the loonie heading into fall.

Precious metals soaring, but extremely dangerous volatility. Too many bulls in the market. Major selloff risk possible despite what is seen on the internet.

Should U.S. COVID cases shrink, USD should recover modestly, but not back to old highs (IMO)

For what it’s worth . . . .

[burnt]

Knocking the stuffins out of the soybean basis. Presold about 1/3 a few weeks ago, hoping it was my low. Most of the price drop since has been basis.

Crop price discussion on a beef board,sorry....

[errolanderson]

Major fallout in the USD in-progress . . . continues to support precious metals and loonie.

December Cdn dollar has now breached 76 cents (Aug 18th). Heavy chart resistance is seen @ 76.75 cents U.S. (for what it's worth). Gold prices will be very volatile. $100 per oz daily swings may be in order ahead. Not for the faint-of-heart . . . .

[errolanderson]

Group . . . loonie appears technically toppy. The USD appears quite oversold. Dec loonie support now seen at 75 cents U.S. We'll see . . . .

Gold is a wild card, but wouldn't be surprised to a sharper than expected pullback in precious metals. This is a dangerous territory to comment. My thinking . . . too many weak gold bulls in the market. Might be time for a house-cleaning.

For what it's worth . . . .

[errolanderson]

Loonie was taken to the back-of-the-woodshed today as crude oil plunged 10 percent today (Sep 08).

Technically, the Dec contract may have a look at 75 cents. A break below 75 cents might be nasty as technicals appear to project major support 73.70 cents U.S.

This pullback should stabilize our cattle prices through a seasonally weak month of September.