All three wheat futures markets closed higher this week due to
strong export sales and a bullish USDA report.
Anecdotal evidence suggested that
stronger export sales were the key driver of the overall upturn in new work.
«The U.S. expansion alongside a more competitive Canadian dollar is continuing to drive
stronger export sales and stabilize manufacturing conditions,» said Craig Wright, senior vice-president and chief economist, RBC.
Stronger export sales helped to offset some of the reduction in domestic demand in February.
Not exact matches
That revision was offset by upward revisions in business investment spending on structures and equipment and by
stronger sales of U.S.
exports.
Generally speaking, a
stronger US economy will mean more
export sales for Canada.
2014.12.01 RBC Canadian Manufacturing PMI ™ signals the fastest rise in
export sales since September 2013 Canadian manufacturers pointed to a further robust improvement in business conditions across the sector in November, supported by
strong increases in output and new order volumes, according to the strongRBC Canadian Manufacturing emPurchasing Managers...
In addition, a
stronger dollar makes
export goods more expensive, which could negatively affect the
sales of companies with significant
exports.
These tables also illustrate, however, that exporters have made some gains in
sales to other countries; over the past year, growth in
exports of manufactures and services to many countries outside the Asian region have been
stronger than trend growth rates recorded earlier in the 1990s.
Precisely because demand in the U.S. continued to be
strong,
export sales from Asia fell less than might have been expected, giving those countries an opportunity to begin to recover from recession.
The
strong Australian dollar is hindering the
export market and there is a serious drought in western Queensland and the Northern Territory, which has increased cattle
sales and put pressure on prices.