The Canadian Dollar and wheat basis

[errolanderson]

Every currency in the world is losing ground to the strengthening U.S. dollar of late.

Cdn wheat is shipped all over the world. Also, U.S. wheat is now about 70 cent/bu premium over Black Sea values. Russia and Ukraine is exporting as much as possible to inject foreign currency reserves.

It's not as simple as just the Cdn dollar dropping to the U.S.

[bucket]

It's never easy errol finding an excuse as to why our products we sell are worth less but everything we buy is worth more.

Fertilizer never takes a price hit due to black Sea competition.

Tractors never go down in value.

They are technically no different than wheat when you start saying things like ....its not as simple as the cdn dropping against the usd....


Then everything should get the same discount. Or is it time to make things more complicated now?

[Lex]

Supply demand curves for food are inelastic. Thats fundamentally different from other commodities.