CDN Dollar playing with basis again

CDN dollar at par talk with the US again. Not good news for the Canadian (CDN) farmer as this has a big effect on basis, perceived or not. Theoretically the strength/ weakness of the Canadian dollar (exchange rate) makes up part of the basis. Right now basis in Ontario is sitting at anywhere from 35 to 45 cents over for new crop corn and 5 to 15 cents over for soys.  Old crop basis on both crops  is still very good most likely attributed to demand (another part that makes up the basis).  A high demand maybe the only hope we have of keeping basis positive until fall harvest after that it could be in a free fall.  Last year there was huge debate whether basis was a true reflection of what it should off been.  Many producers were discouraged and thought the grain trade was keeping the basis artificially low.  The only saving grace to the lower basis was the high future prices.  I am not sure CBOT is going to help us as much this year.  Thoughts?

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