OMG... I'm in the Canadian distribution business and buy everything is USD and sell to Canadians only! It's killing me. The FX forecasters are clowns. None of the banks were projecting this. Even current bank projections always assume were at the bottom yet we keep heading down. The only guy that projected below 0.70 is now saying a 0.59 bottom. All we can do is raise prices but will people buy?
CAD Dollar
- Thread starter cabber24
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hockeyfan1
New member
Fruits and vegetable prices have already risen, and slated to rise more. Recently, a head of cauliflower was priced at $8.99!! It didn't stay at that price, but still it's ridiculous. Tomatoes (Hothouse) at $4.99/lb. That's three for $10.
Read recently that someone at Marquarie Capital predicted the CAD will be $0.59 at end of this year. These were the same people who predicted the CAD was going to be at $0.69 at beginning of this year.
Depressing news.
Read recently that someone at Marquarie Capital predicted the CAD will be $0.59 at end of this year. These were the same people who predicted the CAD was going to be at $0.69 at beginning of this year.
Depressing news.
Highlander
Active member
When I returned to Canada from abroad in 02 I think I was getting 67 cent on every US dollar at that time. Looks like we are getting back there again and the gas price is lower than when I returned. It was 85C a litre then.
Not much we can do with the Arabs flooding the oil market. Was talking to a freind in the oil business here in AZ and he said they are attempting to kill the Fracking industry in the US, looks like they will take the Tar sands with it.
Not much we can do with the Arabs flooding the oil market. Was talking to a freind in the oil business here in AZ and he said they are attempting to kill the Fracking industry in the US, looks like they will take the Tar sands with it.
bustaheims
Active member
Highlander said:
Casual racism aside, that's not the real reason the oil market has collapsed. There's been an excess of oil for a long time now. The issue is that the economy in China went into the tank, and they're basically the biggest buyer of . . . well, everything. The demand for oil dropped dramatically, and that's why the market is now flooded.
Kin
New member
bustaheims said:
And to that end, it's just the umpteenth example of why you should never have an economy without the sort of diversification and regulation that allows for dealing with the unexpected. Just like it was crazy for Wall St. to create an environmental where there'd be a collapse of the global economy if the housing market ever went down, it doesn't make sense to have an economy that will tank if the price of a single commodity drops because, well, that's what commodities do from time to time. There used to be whole towns in New England where the economies were based on the harvesting of ice. Giant blocks that could be shipped to New York to be put in people's ice boxes and keep drinks cold. Then they invented the refridgerator.
The drop of the price of oil isn't unexpected and, as busta says, isn't about "flooding the market". It's that the market is disappearing. In the coming years we're almost certainly going to see a massive difference in the ways Fossil Fuels are consumed. Canada's economy needs the flexibility and resiliency to deal with that.
L K
Active member
Nik the Trik said:
The only thing that has "flooded the market" is that OPEC/The House of Saud are refusing to restrict production to the point of creating an oil shortage to boost the cost of oil. There certainly is a motive to squeeze out more expensive forms of oil production (fracking, oil sands, etc.) but it really was the collapse of a grossly inflated Yuan that has now resulted in instability in the Chinese economy.
bustaheims
Active member
L K said:
Yeah. There's no denying there are problems within the oil industry, but, if the Chinese market doesn't collapse like it has, the impact of those issues would have been minor, and we wouldn't be staring down the barrel of 0.59 dollar. We'd probably be in a much more comfortable 0.75-0.80 range.
hockeyfan1
New member
Depending on one's natural resources, in this case, oil, is not always a good thing. Putting all of your eggs in one basket, so to speak is risky. Should they all break, what do you have for an encore?
We've always been a country dependant on our natural resources -- wood, steel, oil, mining, etc., -- but truthfully, a slight change in economic diversity would do well. The environment, as an example, presents us with challenges and ideas that can transcend into reality, in the areas of ways of dealing with a new economic path.
Technology, innovation, application, flexibility, creativity, and diversity are integrated, and can be, into our economy much more than ever, if our levels of governments, industry, and other sectors can showcase more of a willingness and inclination to go that route.
I can imagine a Canada with 60 million people, living and working all over the country, yes, even in the North, with a transportation hub second to none in the world, and an economy so diversified that she would be the envy of the world. A Canada where Mother Nature is embraced, where resources are renewable, where some of the greatest achievements in transportation have been made ("from sea unto sea"), where the words 'branch plant economy' is not too prevalent, where the economy is vibrant and robust, and so much more. Ah, nice dream, eh?
We've always been a country dependant on our natural resources -- wood, steel, oil, mining, etc., -- but truthfully, a slight change in economic diversity would do well. The environment, as an example, presents us with challenges and ideas that can transcend into reality, in the areas of ways of dealing with a new economic path.
Technology, innovation, application, flexibility, creativity, and diversity are integrated, and can be, into our economy much more than ever, if our levels of governments, industry, and other sectors can showcase more of a willingness and inclination to go that route.
I can imagine a Canada with 60 million people, living and working all over the country, yes, even in the North, with a transportation hub second to none in the world, and an economy so diversified that she would be the envy of the world. A Canada where Mother Nature is embraced, where resources are renewable, where some of the greatest achievements in transportation have been made ("from sea unto sea"), where the words 'branch plant economy' is not too prevalent, where the economy is vibrant and robust, and so much more. Ah, nice dream, eh?
Highlander
Active member
The area used to be called Arabia, the people that live there and sell us oil are Arabic people so don't understand the remark by Busta about "casual racism". Just calling the people by their name is not racist.
People who call Canadians Canuks are not racist either!
Don't forget that Iran with the removal of sanctions also intend to flood the market further and compete with their good friends, the Saudi's. Iran is bankrupt so will need every oil dollar to turn things around (that high grade plutonium is real expensive stuff to create).
People who call Canadians Canuks are not racist either!
Don't forget that Iran with the removal of sanctions also intend to flood the market further and compete with their good friends, the Saudi's. Iran is bankrupt so will need every oil dollar to turn things around (that high grade plutonium is real expensive stuff to create).
bustaheims
Active member
Highlander said:
Because it's not "the Arabs" that are doing anything. It's the oil companies in the Middle East. There's a massive difference between the two. Blaming the Arab people - intentionally or not - for the actions of a group of businessmen is the beginning of a slippery slope into full-blown bigotry. It's like blaming the Jews for the actions of the Israeli government, or Muslims for the actions of extremist radicalized terrorists. You're naming a massive population and laying the blame there for the actions of a small group of people. A large portion of the Arab world aren't involved in the oil industry at all. It's really only a handful of countries that are.
Kin
New member
Highlander said:
Actually, Arabic people are a specific ethnic group. Chiefly, it's people who speak the Arabic language. So Saudi's, for instance, are Arabs but Iranians, who are majority ethnically Persian, are not despite living in "the area". In fact, there are a great many people who live on the Arabian peninsula who aren't Arabs.
And, typically, when people in polite society refer to what a nation-state or even a international organization like OPEC does they don't use a single ethnic signifier. In addition to Iran, Nigeria, Venezuela, Ecuador, Indonesia, Angola are all OPEC members, none of them being Arabic nations. OPEC isn't "The Arabs" just like NATO isn't "The Whites". Canuck is a nickname, not an ethnicity(Canadian isn't an ethnicity either). Saudi or Saudi Arabian is a nationality.
Seriously, this shouldn't need explaining.
Kin
New member
Also, in terms of "who sells us oil" as this chart shows Canada imports most of its crude oil these days from the USA and oil from Africa and the North Sea has tended to exceed any imported from the Middle East.
But even that is a relatively minor concern as, being a big oil producing nation, our imports are decreasing:
https://www.neb-one.gc.ca/nrg/ntgrtd/mrkt/snpsht/2014/11-01lmprt-eng.html
But even that is a relatively minor concern as, being a big oil producing nation, our imports are decreasing:
https://www.neb-one.gc.ca/nrg/ntgrtd/mrkt/snpsht/2014/11-01lmprt-eng.html
I dont know if I can quantify which is worse, oil prices or lowered growth in China. The thing is there isn't a demand problem for oil, its oversupply. But low cost oil actually has plenty of beneficiaries, just not our economy, but a slowing China is bad news for everybody.
Sent from my LG-D852 using Tapatalk
Sent from my LG-D852 using Tapatalk
Highlander
Active member
No offense intended. I love all people
70.65 cents WHOOOOOOOOOOOOOOOOOOOOOOHOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
hockeyfan1
New member
Good article on Canada's woes:
As prices for commodities have dropped, the value of the Canadian dollar has fallen, a direct link to an economy that is dependent on oil and other resources. It makes imports, like fresh American vegetables during the dark Canadian winter, look especially costly.
The drought in California, where Canadians get most of their vegetables in the off-season, just compounds the sticker shock.
For years, Canada rode the global commodities boom. The rapidly growing Chinese economy ? and its seemingly insatiable appetite for commodities ? helped increase the price of oil, potash, nickel and the other Canadian resources.
With China?s demand now faltering, commodity prices have reversed course. Oversupply of oil has similarly devastated its price. Both factors are taking their toll on the Canadian economy. The gross domestic product increased just 0.6 percent in the third quarter of 2015, after six months of negative growth.
In many ways, a weaker currency is helpful to the economy. The United States is overwhelmingly the largest market for Canadian exports, which are now less expensive across the border because of the currency?s fall.
?From a household point of view, what Canadians see is that their dollar isn?t going as far,? said Craig Alexander, vice president of economic research at the C.D. Howe Institute, an economic analysis and policy group. ?But it?s good for Canadians, it?s good for jobs. The primary driver for economic growth going forward has to come from nonresource export sectors.
Speaking at the World Economic Forum in Davos, Switzerland, on Wednesday, Prime Minister Justin Trudeau emphasized Canada?s strengths in technology and education rather than its ailing natural resource sector.
?Our natural resources are important and always will be,? Mr. Trudeau said. ?But Canadians know that growth and prosperity is not only based on what?s under our feet but particularly on what we have between our ears.?
The current collapse of the country?s dollar could have a more significant impact in supermarkets than it did in the early 2000s, according to Sylvain Charlebois, a professor at the University of Guelph in Ontario and an author of an annual study of Canadian food prices.
Professor Charlebois estimated that about 140 Canadian food processing plants have closed in recent years. Many were owned by multinationals that have replaced Canadian production with imports from their larger American plants. Kellogg?s ended a century of production in London, Ontario, just over a year ago.
The result, Professor Charlebois said, is that price increases will be seen throughout grocery stores and not just in their fresh produce aisles. Already, he said, some breakfast cereals have hit 10 Canadian dollars.
...prices had risen only slightly for dairy, poultry, eggs...
Rest of story:
http://www.nytimes.com/2016/01/21/business/dealbook/in-canada-5-cauliflowers-cost-more-than-a-barrel-of-oil.html
As prices for commodities have dropped, the value of the Canadian dollar has fallen, a direct link to an economy that is dependent on oil and other resources. It makes imports, like fresh American vegetables during the dark Canadian winter, look especially costly.
The drought in California, where Canadians get most of their vegetables in the off-season, just compounds the sticker shock.
For years, Canada rode the global commodities boom. The rapidly growing Chinese economy ? and its seemingly insatiable appetite for commodities ? helped increase the price of oil, potash, nickel and the other Canadian resources.
With China?s demand now faltering, commodity prices have reversed course. Oversupply of oil has similarly devastated its price. Both factors are taking their toll on the Canadian economy. The gross domestic product increased just 0.6 percent in the third quarter of 2015, after six months of negative growth.
In many ways, a weaker currency is helpful to the economy. The United States is overwhelmingly the largest market for Canadian exports, which are now less expensive across the border because of the currency?s fall.
?From a household point of view, what Canadians see is that their dollar isn?t going as far,? said Craig Alexander, vice president of economic research at the C.D. Howe Institute, an economic analysis and policy group. ?But it?s good for Canadians, it?s good for jobs. The primary driver for economic growth going forward has to come from nonresource export sectors.
Speaking at the World Economic Forum in Davos, Switzerland, on Wednesday, Prime Minister Justin Trudeau emphasized Canada?s strengths in technology and education rather than its ailing natural resource sector.
?Our natural resources are important and always will be,? Mr. Trudeau said. ?But Canadians know that growth and prosperity is not only based on what?s under our feet but particularly on what we have between our ears.?
The current collapse of the country?s dollar could have a more significant impact in supermarkets than it did in the early 2000s, according to Sylvain Charlebois, a professor at the University of Guelph in Ontario and an author of an annual study of Canadian food prices.
Professor Charlebois estimated that about 140 Canadian food processing plants have closed in recent years. Many were owned by multinationals that have replaced Canadian production with imports from their larger American plants. Kellogg?s ended a century of production in London, Ontario, just over a year ago.
The result, Professor Charlebois said, is that price increases will be seen throughout grocery stores and not just in their fresh produce aisles. Already, he said, some breakfast cereals have hit 10 Canadian dollars.
...prices had risen only slightly for dairy, poultry, eggs...
Rest of story:
http://www.nytimes.com/2016/01/21/business/dealbook/in-canada-5-cauliflowers-cost-more-than-a-barrel-of-oil.html