Farm Credit Canada economist J. P. Gervais says the U-K's exit from the European Union will have short and long-term impacts on Canadian agri-food markets.
Gervais expects the exit to create instability and volatility in financial markets.
He says that usually means a stronger U-S dollar as investors look for a safe haven.
While a stronger U-S dollar usually means weaker agricultural commodity prices, Gervais doesn't think the impact in this case will be too significant.
He points out it would not reflect changes in the supply and demand conditions for commodities.
And he suggests a lower Canadian dollar could mean more attractive prices - in the short term - for commodities priced in U-S dollars that Canadian producers sell.
The FCC economist adds that a move out of the EU will likely mean less support to U-K producers, increasing the exposure of U-K agricultural producers to world market conditions.
Gervais also says the U-K is a net importer of food and an expected drop in the value of the pound with the exit from the E-U would make it more expensive for that country to import food products.
