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Canadian exporters are adjusting currency hedges and buying the loonie at stronger levels as its gain against the US dollar reaches nearly 6% this year. The Bank of Canada's commodity price index excluding energy has reached its highest level since 1972, and oil has nearly doubled since November.
The article notes that the currency surge is tied to commodity prices.
Record commodity price levels signal strong demand and tight supply across raw materials that feed into feed markets. A stronger loonie can shift export pricing and hedging decisions for Canadian grain and oilseed sellers.
theglobeandmail.comFergal SmithMay 18, 2021Not enough comparable past events yet for a historical read.
After 487 past bullish macro events, Crude Oil (WTI) moved a median +1.0% over 5 sessions (60% higher; middle half -2.0% to +4.0%), and +1.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
