Canadian dollar

And so the Canadian dollar, all of the, uh, support, uh, behind the Canadian dollar can remain there, but if there are changes in the US dollar, we can see movements in the exchange rate.

Um, if we think about a move higher, you know, when we think about what is the exchange rate, how does it affect, uh, you know, Can- the Canadian ag, ag sector? And really, if we think about the range that it's in right now, this is in a range that does provide some support for kine- uh, competitiveness of Canadian exports, you know, by lowering the US dollar prices for, you know, grains, oilseed, livestock, everything that we're kind of sending abroad, um, you know, specifically to the United States.

But at the same time, this could raise the cost for, for, uh, imported inputs, especially if we see, you know, changes in, in, in the CAD.

So it's something to keep in mind.

So the sale price can be affected, the competitiveness can be affected, but also some of your impo-input costs as well could be affected.

That, that makes those inputs more expensive as, as well.

Absolutely.

So, you know, if we think about a CAD moving higher, if we're starting to push into that seventy-four or even break through that seventy-four to seventy-five or seventy-six range, which is not our expectation, but if that's the case, that's exactly what happens.

I, I guess we gotta keep smiling.

Um, I, I, I guess, uh, we'll, we'll get into the Canadian dollar and what's going on in the bottom market.

I, I think we should just start off by, uh, the economic impact here.

Agriculture has, for the most part, stayed out of the, the prop wash, so to speak, when it comes to the trade battle, some would call it a trade war.

You know, the, the alcohol has been in the, in the center of this for a while with the provincial bans in Canada on, on US alcohol.

So I, I, I don't think we should be surprised that alcohol made its way to, to this stage at, at, at all.

Uh, Canadian dollar.

Let, let, let's keep in the trade, you know, at this time.

And really, if we think about the range that it's in right now, this is in a range that does provide some support for kine- uh, competitiveness of Canadian exports, you know, by lowering the US dollar prices for, you know, grains, oil seed, livestock, everything that we're kind of sending abroad, um, you know, specifically to the United States.

But at the same time, this could raise the cost for, for, uh, imported inputs, especially if we see, you know, changes in, in, in the CAD.

So it's something to keep in mind.

So the sale price can be affected, the competitiveness can be affected, but also some of your impo- input costs as well could be affected.

That, that makes those inputs more expensive as, as well.

Absolutely.

So, you know, if we think about a CAD moving higher, if we're starting to push into that seventy-four or even break through that seventy-four to seventy-five or seventy-six range, which is not our expectation, but if that's the case, that's exactly what happens.

So it-- while on the one hand it, it does affect our competitiveness in, in the United States, for example, it does make the, uh, cost of inputs, um, relatively more, more cheaper.

Beans were also up higher today at the end of the day, 1316 and a quarter.

Corn was down two and three quarter today to 540.75. Bean oil was down almost a cent to 7004 Canadian dollar, up 28 points, another 28 points.

7251 is where that was trading at the time of this snapshot.

Cattle, was seeing some good gains today.

hungry crush plants, all of those are kind of adding up to canola being strong, even as we head into the start of harvest here.

Talk about some currencies here.

Here's the Canadian dollar.

It continued to strengthen today up to 70, or it hit up to 72.60 today.

Okay

... because if you're investing more down south, y- the Ca- the Canadian dollar's gonna again eventually get wrecked if we continue down this path.

It was down again- that down against a bunch of other currencies today, and you might have, may have noticed that the BTC CAD price moved, uh, more than just against the US dollar exchange rate.

It was, uh, also showing weakness, so.

So that means even the US is showing weakness too, if that's the case.

And so as a Canadian, you gotta think to yourself, "Where am I gonna park my money?" Certainly not in a currency that looks to be weakening, even though there's at least some hope that recent energy movement, uh, from the prime minister's office vis-a-vis Alberta and the, uh, and, and the, the, you know, sort of clown show out in British Columbia, maybe you can get some support for the dollar that way.

Maybe you get it through, uh, other natural resources that potentially could be unlocked.

But I would say that at this point, you're really running a risk, uh, if you stay in the CAD.

Right.

And didn't they say their current capital can support well over 100 million CAD in revenue?

They did, yeah.

But despite that, the stock reaction was brutal.

Actually, no.

It was primarily driven by accounting rules, specifically IFRS requirements.

They basically had to take a $650,000 CAD deduction for customer advertising support.

Hold on.

Well, that's where risk management gets really slippery.

Like, if you're on a USD account trading something like USDCAD, your account matches the first currency, the base.

Right.

But remember, the golden rule, the pip value lives in the, quote, "currency," which is CAD.

Mm.

Because CAD is the quote, you actually have to divide by the exchange rate to get back to your USD base.

So meaning, if I trade one lot and the USDCAD market rate is, I don't know, one point three six five zero, I divide my standard ten dollars by one point three six five zero.

Exactly.