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BA Deere
Honored Advisor

Skyrocketing food prices in Canada

The Loonie is record low to the Dollar making imported foods mostly fruits and vegetables very expensive.  There are lessons to be learned, perhaps this is why the fed so defends the dollar in this country, because of all the imported goods in this country, it`d big game over, disaster.  

 

Canada usually has a positive balance of trade, so their cheap Loonie helps in some aspects.  This country on the other hand runs $700 billion anual trade deficits.

 

http://www.cbc.ca/news/business/loonie-grocery-costs-1.3399841  

 

http://www.msn.com/en-us/money/markets/record-low-loonie-in-top-forecaster%E2%80%99s-sights-amid-com...

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2 Replies
jec22
Veteran Advisor

Re: Skyrocketing food prices in Canada

If you do any grocery shopping in the US, you would think commodity and freight prices were at all time highs.  The margins have to be insanily high.  Lot like the fertilizer market.

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sw363535
Honored Advisor

Re: Skyrocketing food prices in Canada

Actually basic commodities are not that expensive......

Saw a lot of milk move early this month for $2 a gallon..

Meat at the counter has come down a little on the not so fancy cuts..

 

But there is also a time period of catch up for some since they had cut margins to be competitive at higher prices.

Then there is that "as soon as we get the higher priced inventory moved" reason ---That is the one I hear from the fertilizer guy.

 

Truth is the Koch guys are gonna change my religion if they don't cut this out.... With natural gas at these rates nitrogen has to be better than the feds printing press.

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