Currency Moves Tighten Margins
PANAMA - Jan 26/18 - SNS -- Birdseed ingredient markets were little changed in seasonally light trade during the past week, with recent strength in the Canadian dollar adding to price pressure on exporters.
While inter-dealer markets in Canada were nominally unchanged on the week, there were reports of more aggressive pricing to Mexico. That is Canada's most important market, accounting for 22% to 25% of total exports in recent years.
Combined with a stronger Canadian dollar, the week saw a modest decrease in average grower bid levels during the week. Though spot market bids continue to range up to CDN $21 per 100 pounds (cwt) for farmers dressed product delivered to processing plants in Saskatchewan, more companies lowered grower bids to $20.