Lentils Buffeted by Currency Markets
PANAMA - Mar 20/20 - SNS -- Global lentil markets were buffeted by steep declines in the value of most currencies versus the U.S. dollar.
This saw basis margins widen considerably in Canada and other origins as exporters adopted a conservative attitude toward price adjustments because of uncertainty over future currency values.
The Canadian dollar was battered by weakness in oil markets and the decision by the Bank of Canada to lower its bench mark interest rate by 100 basis points to 0.75%. Currency markets expect the benchmark interest rate to be cut further in an effort to stimulate the Canadian economy.