As we see our Canadian dollar weakening on the pressure from the US dollar strengthening, grain markets on both sides of the border are bring affected.

US producers are facing global pressure on their exports now, as all their product is deemed “overpriced” because of the strong US dollar.  US mills and end users import Canadian products, at a 34% lower price right now due to dollar exchange.  Makes for some interesting conversations with US producers, as they see Canadian products as “competition” in their markets. It is interesting to see that both Canada and USA are net exporters, both nations produce more than they can consume, yet there is always an overlap with the same products being imported on both sides of the border.  Usually extenuating circumstances like niche markets, specialty products, or just a guaranteed supply line that has years of history.  Such was the case with a few micro brewers in Washington state that I’ve had the privilege of sampling their product!  They have been sourcing malt barley out of southern AB for years… not because of the price, but because they were guaranteed a certain germination %, protein content, and overall quality and consistent product.  2 of 5 years the local Barley crop would be rained on, the grade reduced, not suitable for Malting, and they could not rely on the local product.  As a Canadian promoting our quality fertilizer product in the US Market, I have to lend a sympathetic ear to the producers on both sides of the border.  I did find out that the local price they were paid for feed barley in Washington was still higher than what the Canadian producers received for their Malt barley.  So are the Canadians complaining? No.  Both products found homes.  Both producers accepted a price.  Seems like a fair deal to me!  This makes for great coffee shop discussion, maybe more on this next time? Have a great day!

– Neil