Winnipeg Free Press

Winnipeg Free Press (Newspaper) - October 30, 2008, Winnipeg, Manitoba C m y k Page b4 business editor Steve Pona 697 7264 business free press. My. Ca i Market details b7 8 i Winnipeg repress. Com thursday october 30, 2008 b 4 a p tax 9,501.56 349.93 Dow 8,990.96 74.16 Nash a 1,657.21 7.74 Gold $ 752.80 $ 13.50 Oil $ 67.45 $ 4.65 Dollar 81.63� 3.67�. T he Canadian Dollar had one of its biggest single Day jumps in history wednesday As the value of the u. Greenback eroded against other major currencies including the euro and British Pound. The loonie backed off some of its enthusiastic gains from earlier in the Day and ended the session ahead 3.67 cents to 81.63 cents us. It had jumped by As much As 4.5 cents from tuesdays close according to Bank of Mont realms currency desk. That was biggest int Raday daily gain Ever for the loonie beating a record set in the Early 1970s, according to Bank of Canada data. But the loonies surge was interrupted by the Greenback which recovered some ground after the fed slashed a key interest rate by half a percentage Point. The fed rate Cut is calculated to stimulate the u. Economy by making borrowing less costly but it will also reduce foreign investors appetite for american debt and dollars. Wild fluctuations in the loonies value have been frequent but a shift of wednesdays magnitude is uncommon. A stronger Canadian Dollar could be Good for Consumers who Are planning Winter vacations to the u. Southern states or for importers of everything from California lettuce to Florida Citrus fruit which will suddenly become More expensive. Scotia capital currency specialist Stephen Malyon says the Dollar is positioning itself to be Down almost 14 per cent on the month. Canadians expect the loonie to soar anywhere near the lofty Heights it experienced last year he said. Theress still quite a few headwinds for the Canadian Dollar because i think commodity prices Are going to struggle and global growth is not going to look very Good for quite awhile yet he said. Any time we see a decline in our currency that potentially benefits our Export sector the problem is that the Canadian Dollar is weakening for a reason. He said markets for Many Canadian exports housing materials automobiles and other goods will continue to show weakness in the near term which will restrain the dollars growth. But if the loonie rises further it will continue to pressure Canadas troubled manufacturing sector which has been Given some Relief by the current yes Sharp drop in recent months which made their exports cheaper to u. Buyers. October has been an extraordinarily volatile month on commodity Stock and currency markets As a result of a global meltdown in the financial system and fears of a worldwide recession. Were seeing a Broad based weakness in the u. Dollar against most of the major currencies. So thatus served As a Benefit to the Canadian Dollar said George Davis chief technical analyst at rec capital markets. Also moving the loonie higher Are stronger prices for commodities produced by Canadian companies. The Price of december crude Oil contracts shot up $ 4.77 to us 67.50 a barrel on the new York mercantile Exchange. The Price of Gold Bullion and base metals such As Copper also Rose sharply. Earlier in the week the loonie was buffeted by a global migration of investors to the american Dollar. On monday the Canadian Dollar plunged to 77.10 cents u. S., the lowest level in More than four years. Meanwhile Davis said that he expects the Canadian Dollar to face further volatility for at least the rest of the year As traders continue to test the future of economies around the world. The Canadian press volatile loonie surges upward by David Friend. One of its biggest single Day jumps Ever. Weak Canadian exports to restrain Dollar american food Labelling rules could Cost Manitoba 50 per cent of its weanling pig exports to the United states a business once valued at $ 150 million annually the Manitoba pork Council says. Andrew Dickson the groups general manager said wednesday that american buyers have severely Cut Back purchases in the Wake of u. Country of origin Labelling Cool legislation which took effect sept. 30. The Way its going were going to be Lucky if we can hold on to half the weanling Market he said. The new Labelling rules require that u. Retailers indicate the country of origin for pork and a Host of other foods. Some major american packers including Hormel foods and John Morrell co., have indicated they will no longer accept Canadian origin hogs because of the new rules. Canadian lobbyists were unsuccessful in persuading u. Officials to regard pork from Canadian born pigs fed in the United states As a u. Product. Before the Law took effect Manitoba producers shipped about 4.2 million weanling a year to the u. Feeders. Its just Uncertain right now what is going to happen Dickson said in an interview. That uncertainty is leading to a stepped up liquidation of Manitoba ass pig Breeding Herd which totalled 347,000 animals on oct. 1. We probably have about 150,000 to 170,000 sows dedicated to supplying weanling into the United states. If we held on to half of those sows to produce weanling theress still a Large number that Are going to be liquidated Dickson said. Earlier this year Manitoba hog producers culled 22,000 head of Breeding Stock As part of a $ 50 million Federal initiative to slash the Canadian pig Herd due to overproduction. Farmers received $ 225 per sow in Exchange for idling barns. While Cool has slowed the number of weanling pigs heading South of the Border its All but stopped the Export of Market weight hogs Industry officials say. Manitoba once shipped 1.2 million of these pigs annually. Many of those pigs Are now being slaughtered in Manitoba As Maple Leaf foods has added a second production shift at its new Brandon slaughtering Plant. The facility can now process up to 86,000 pigs a week. Yet with the u. Border largely closed to Market hogs because of pork Labelling rules Farmers Are concerned about a Lack of Competition for their animals. Canadian hog producers have suffered severe losses in the last year due to overproduction High feed costs u. Non Tariff Trade barriers and a High valued loonie. Weanling producers have been forced to sell their pigs for a fraction of the Cost of producing them. Farmers who feed pigs to Market weight were losing As much As $ 50 per animal last fall. While weanling producers Are still facing staggering losses the situation has improved considerably for those Selling Market hogs. John Preun chairman of the Manitoba pork marketing Coop said falling feed Grain prices Strong offshore demand and a devalued loonie have brought returns on Market hogs to near break even Levels for the most efficient producers. Preun said he was hopeful that prices for these hogs could return to profitability by mid 2009. At this Point theress a Light at the end of the Tunnel we just Hope its not another train coming at us he quipped. Larry. Kusch free press. My. Ca hog producers cull Breeding sows major u. Packers Nix Canadian hogs by Larry Kusch Toronto the Canadian food processing giant that saw its meat business battered by a Lister Osis outbreak at a key Plant this summer Hopes to see a full recovery by next year the company is ceo said wednesday. Chief executive Michael Mccain said Maple Leaf foods inc. Tax Mai has examined several Case studies of other companies that were forced to recall products Over illness outbreaks and it be unprecedented to expect a full Brand recovery within six to 12 months. But the Toronto food company has been seeing week Over week improvements in the sales of both Maple Leaf Brand products and its meats generally since Early september. In fact the number of Consumers who say they re buying Maple Leaf products has More than doubled in the last two months and the most recent Survey done by the company indicates that More than 80 per cent of Consumers Are planning to buy the products in the near term Mccain said. Over time with patience and hard work Over time we will be in a position or have an Opportunity to recover Consumers Trust in our Brand he said. Twenty people died earlier this year from a Strain of Lister Osis linked to Maple Leafs Toronto package meat Plant which the company was forced to close for weeks for sanitize action and testing. Mccain said wednesday he estimates the outbreak and resulting recall of hundreds of Maple Leaf products Cost the company Between $ 25 million and $ 30 million plus another $ 15 million in lost sales. That eliminated most of the third Quarter operating profits in its meat division and produced a big Overall net loss for the company. In its financial statement Maple Leaf reported a summer Quarter loss of $ 12.9 million or 10 cents per share. That compared with a year earlier profit of $ 220.4 million or $ 1.67 per share. The 2007 profit included a $ 218.7 million gain on discontinued operations. The Canadian press Maple Leaf predicts Brand recovery by Kristine Owram a Developer who proposed to put up one of Winnipeg Gas highest apartment buildings along the Riverbank in North Kildonan has bowed to neighbourhood protests with a new plan for two smaller buildings still the tallest such development in decades. Vancouver based Devonshire properties inc. Says it wants to build a 21 Storey and a 15 Storey Tower on its Edgewood estates property on whellams Lane instead of the 35 Storey Structure that it originally proposed. The City really a snot seen any construction like that since at least the Early 1980s 82 or 83, John Wintrup City planner for East Kildonan Transcona said in an interview wednesday. With 331 one two and three bedroom apartments the $ 50 million development would be Good news for renters. Jeff Powell Canada mortgage and housing corp. S senior Market analyst for Manitoba said despite a spurt in apartment construction in recent years Winnipeg Gas Overall apartment vacancy rate is still Only about one per cent. I would suggest it the Devonshire project would be a very Welcome addition to the rental Market universe in Winnipeg he said. Devonshire officials Are hoping construction will begin by the end of the year. That would provide a big boost to this years Multi family housing starts which have been running 37 per cent behind last years decades High Pace. Wintrup said the East Kildonan Transcona Community committee is to Deal with an application to Amend the zoning agreement for the property at a 6 30 p. M. Meeting on nov. 17 at River East collegiate. A spokesman for Winnipeg architectural firm Cooper Rankin architects said Devonshire officials opted to go with two smaller buildings because of concerns expressed by area residents about the Impact of a 35 Storey building on the neighbourhood and because splitting it into two buildings would enable Devonshire to build the Complex in two phases rather than bringing 331 new rental units onto the Market All at once. However Keith Rankin a partner in Cooper Rankin architects said despite the size of the project Devonshire should have no trouble filling the buildings. They already have an extensive waiting list for units in this property he said. Murray. Mcneill free press. My. Ca apartment towers to Rise by Riverbank by Murray Mcneill handout Devonshire is proposed Complex. Colin Corneau / Brandon Sun a livestock truck exits the Maple Leaf Plant in Brand ones East end monday afternoon. The Plant now processes More than 80,000 hogs per week. A 04_ oct 30 08. Ind b4 1 0/ 29/ 08 9 10 50 pm ;