Canadian Dollar

[charliep]

Any opinions on the loonie value relative to the US green back. The linked article indicates the possibility of an 86 cent loonie. Has big implications if you hedge wheat using US futures.

[URL="http://business.financialpost.com/2012/06/26/the-loonie-will-hit-us86-cents-next-year-capital-economics/?utm_source=feedburner&utm_medium=feed&utm_campaig n=Feed%3A FP_TopStories %28Financial Post - Top Stories%29&utm_content=Google Reader"]86 cent loonie[/URL]

[ado089]

By the time our dollar hits 86 cents the
US will be so screwed that your hedged
grain will still make you look like a genius even after having 14% of the value
sucked out of it.

[bobofthenorth]

If you are really in a hedging program then you need to be hedging the dollar as well as the commodity. It really doesn't matter what a bunch of internet experts think is going to happen to the Canuck-buck, its still speculation whether you are exposed to commodity prices or exchange rates.

Personally I think that all the talking heads at the banks and brokerages couldn't pour piss out of a boot if the instructions were written on the sole but that's just my opinion and won't help you one iota if/when prices tank.