Farm Credit Canada's Chief Agricultural Economist says the value of the Chinese currency should not be the primary focus of agricultural producers and agribusinesses.
J. P. Gervais points out the depreciation of the Euro and Japanese yen has been a lot more substantial over a longer period, and both those destinations are important markets for Canadian agriculture.
He says recent statistics show a 15 per cent decline in the Chinese sow herd - something that's bullish for the pork market and positive for exporting nations like Canada.
There are also suggestions China may reduce the price support for corn, potentially unlocking a stronger demand for corn.
Gervais expects the Chinese economy to continue to slow and the currency is likely to further drop against the U-S dollar.
He says both would be a positive overall development for agricultural markets.
Despite that, the FCC economist argues Canadian farmers and agribusiness operators should put their emphasis on market fundamentals like the strength of demand and available supplies - and not on how the Chinese economy is doing.
