Bank of Canada Archives | Alberta Farmer Express

Ag seen gaining on slightly weaker loonie in 2019

By Ashley Robinson - MarketsFarm January 11, 2019

CNS Canada — Farm Credit Canada (FCC) predicts the Canadian dollar will spend the year around the 75-U.S. cent mark — slightly softer than last year’s average of 76. “We’re going to see volatility throughout the year obviously but when we look at that season, or the full year average, we’re looking for it to […] Read more

Crops, Markets

Trade certainty doesn’t translate to higher loonie

By Ashley Robinson - MarketsFarm October 12, 2018

CNS Canada — Even with more certainty around trade with the U.S., Canadians shouldn’t expect to see the dollar flying in value. “It’s hard for me to see the Canadian dollar gain value against the U.S. dollar in the short term, unless the Bank of Canada totally revises its stance towards interest rates,” said J.P. […] Read more

General, Markets

Consider hedging against rate hikes, farmers advised

By Terry Fries July 11, 2018

CNS Canada — The Bank of Canada has raised its benchmark interest rate to 1.5 per cent, marking the fourth time it has raised rates since last summer. The increase from 1.25 per cent is the base rate retail banks pay for short-term loans, but consumer rates for mortgages, lines of credit and other loans […] Read more

General, Markets, Weather

Farmland values rise, but interest rates curb market

By Ashley Robinson - MarketsFarm April 23, 2018

CNS Canada — Prices of Canadian farmland were seen rising in 2017, with most sales happening in the first half of 2017 before interest rate increases and the drought in Western Canada hit. That’s according to the annual Farmland Values Report released Monday by Farm Credit Canada (FCC), based on 90 per cent of farmland […] Read more

Since most farm equipment is imported from the U.S., the rise in the Canadian dollar will lower the tab  for new machinery.

News

Higher loonie will have many impacts

MARKET WATCH: A low dollar shielded Canadian farmers from lower commodity prices but it also raised the cost of farm equipment and inputs

By Alexis Kienlen, Terry Fries September 25, 2017

While you were busy growing crops and raising livestock this summer, a rising dollar has been taking aim at your profits. The growing season started with the loonie trading under the 75 U.S. cents mark — and many analysts sticking to the theory it would stay low as long as oil prices remained in the […] Read more

News

With interest rates on the rise, is it time to lock in?

Variable rates have been a winner for decades, but a fixed rate is an option worth considering

By Alberta Agriculture and Forestry September 6, 2017

Is it time to lock into a fixed long-term mortgage? “Since 1975, the majority of the time the variable interest rate has been the better option and has saved producers money,” said provincial farm financial specialist Rick Dehod. However, the Bank of Canada recently increased its prime rate by a quarter of a percentage point […] Read more

Livestock, Markets

Currency analysts watch for interest rate decision

By Jade Markus January 19, 2016

CNS Canada — The likelihood of the Bank of Canada cutting interest rates on Wednesday is already priced into the loonie, according to one analyst — but if the bank instead decides to hold rates steady, the beleaguered currency could move higher. The Canadian dollar was trading around US69 cents (US$1=C$1.45) near midday Tuesday, which […] Read more

Crops, Markets

Cheaper crude clouds Canada’s economic fortunes

By Lisa Guenther March 10, 2015

While dropping oil prices have boosted the U.S. economy, how the price slump will affect the outlook north of the border remains a question mark from where Canada’s largest lender sits. “In Canada, it’s a little bit less clear-cut. And the reason is our energy sector is much larger as a share of the overall […] Read more

Canola, Crops, Markets

ICE weekly outlook: Canola spikes as loonie falls

By Dave Sims January 21, 2015

CNS Canada — ICE Futures Canada canola contracts finished higher for the week ended Wednesday, tracking the U.S. soy complex for much of the period but ultimately shooting higher due to the Canadian dollar’s sudden free-fall. The weaker currency helped improve domestic crush margins and also made canola more attractive to exporters pricing in U.S. […] Read more

Wet harvests hurt U.S., Canadian spring wheat quality

U.S. grains: Soybeans down on China trade pessimism

U.S. livestock: Hogs drop as China delegation cancels farm visits

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