Farm Credit Canada's Chief Agricultural Economist thinks this country's agricultural producers and food processors will likely benefit from the lower value of the loonie.
J. P. Gervais says as a net exporter of agricultural commodities, Canadian producers and businesses will usually see their competitiveness climb when the value of the loonie falls.
He believes the lower loonie will give Canadian grains and oilseeds a price advantage in the U-S market.
But because the euro, the Japanese yen and the Mexican peso haven't moved much against the Canadian dollar, he expects the currency fluctuation will be somewhat neutral in those markets.
Gervais considers China to be a notable exception.
The Chinese currency has seen it's value increase against the loonie.
The FCC economist says that bodes well for Canadian exporters looking to capture the growth in Chinese food demand.
