Dollar at Par!

[SASKFARMER3]

Well the US dollar and ours is worth the same. Their broke and dollar up we have oil dollar up. Yea its text book logic. But for a farmer what does that mean. Well Canadian equipment on lots is way over priced. Look to Us dealers and bring north. Example JD 9630 ND $276,000.00 and in Canada $301,000.00 Its equipped the same way and even same hours. Hm can you get it to your farm from ND yea about $5000,00 So definitely worth it if you need equipment. Here is a good one priced a new swing auger (blue) 13 x 90 my god they want $26,000 for a auger. Hm something just doesn't add up its a auger. Now real-estate in USA that's a tough one What if the broke USA decides in a year or two to tax all foreign owners on sale say 50% hm would wipe out that debt really fast.
But their still is deals out their. On grain side its already factored in no one wants our stuff anyway.

[cottonpicken]

Means a little more than that.

The usdx has been quite strong.Gold and oil seem
to be trading inversly to the rest of the world and
not the usdx.

In round one we got to see what happens to
commodity prices when the worlds reserve currency
is devalued.

Now we are starting round two with global currency
devaluation-buckle up and enjoy the ride.

[boarderbloke]

Is this what canola is worth at par? Canola @ $8.77/bus July futures vs. $9.535/bus July soybeans? I thought this was an "oil driven" market, 21 lbs of oil/bus from canola @ 42%, 13lbs of oil/bus from soybeans @ 22%.

[charliep]

You can go to the Canadian Oilseed processors association website and look at the crush margin.

You can look at your question from a couple of angles. On a per tonne basis, you soybeans are worth about $350/tonne (your choice of currency). Canola futures are $390 ish.

If I compare to soybean oil at 40 cents/lb and canola at $390/tonne. My quick calculation are convert soybean oil to Cdn $ (easy today) and multiply by 10. If you want canola contribution to crush (from the futures based index, multiply 900 lbs. times time 40 cent/lb. $360/tonne.

Canola meal is tougher these days with the salmonella issue into the US playing havoc with margins. Canola not sold in North America is being loaded in rail cars, shipped to Vancouver, loaded in ships and then sold into a bloated international protein market - lots of expense to move a product. I suspect meal isn't making much of a contribution to many crushers bottom line.

[boarderbloke]

charliep, "I suspect meal isn't making much of a contribution to many crushers bottom line." I completely agree, and continue to contend that the crush is "oil driven". So why at "par", would canola be priced lower, or even the same as soybeans, when the oil yield per bushel of canola is near double that of soybeans, and in addition, crushed canola does not have the massive volume of meal to handle or market(in a depressed feed/protein marketplace)
I argue that canola is undervalued.

[ianben]

Tourist rate for £ against can dollar is 1.45 last time I was in Canada I was getting 2.20.
We can get £260/tonne canola so guess that is $390/tonne

Petrol price here has hit an all time high today £1.20/litre higher than crude was 150$/barrel,due to exchange rate and extra 10p tax.

So we are at the opposite side of the cycle and I know were I would rather be.

Everything we buy is priced in Euros or dollars so price increases are never ending.
That $390 canola is actually the equivalent of $300 18 months ago.