Canadian Dollar

[jensend]

http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html

another measure of the illness of the american economy psychology has gone south.

[dave4441]

I agree with those things, just i hear people talking about taking a hedge on currency, for a farm that realizes no sales in US dollars. I find it hard to comprehend if it is pure speculation or a true hedge (actually, your account will not call it a hedge, that much i am sure on). CDN dollar has appreciated 5% and new crop red lentils have dropped 3 cents in the same time. Demand and supply figure into it so greatly. I also agree long term sees a firmer US dollar, but what if CDN dollar falls to 1.15, from 1.05 today and you have a 10% margin call on something that is not a true hedge. Are people actually doing this? I am not sure i can see value in this for our farm.

[mbratrud]

To be clear Dave444 that is precisely why I wouldn’t get into this "game" as a farmer unless there was real potential for 10% gain. To your last point If I decide to sell Canola for $9 because I think that is a profitable number and there are many things indicating that it is going be less than that, then the price goes to $9.50 how is that any different? Hedge is a word we throw around loosely, and like you say most of us have spec accounts. Maybe it is better described as doing our best to mitigate risk with the tools and information we have at the time. So I view the dollar at sub .90 cents to the USD as a buying opportunity at this time. To protect me from the risk of a Strong CAD against a weak USD and Euro. So something I may look at doing is if my next Lentil sale is going to be worth around $100,000, (which I wont make until I am more comfortable with production) I may look at buying 1 Dec Contract if I seen a good opportunity below .90 for example. Yes people are actually doing this.

[mbratrud]

Pars, Cott,

So what does your crystal ball say? What trumps what US shit storm or EU shitstorm. Maybe we all should be buying Iraqi dollars?

[mbratrud]

1 Iraqi Dinar (IQD) value equal to Canadian Dollar (CAD) 0.0007833

[cottonpicken]

The best performing currency is gold.

Which i recommended at 375.

[mbratrud]

No dought

http://zfacts.com/p/318.html

[mbratrud]

The only thing better than having bought gold would be now to take physical possesion and burry it in your back yard.

[shaney]

>

[mbratrud]

tks for the post shaney