posted Jul 12, 2012 16:17
So how do open market wheat prices up here in the Dominion compare to those just across the line from us in the States? Lets have a lookie look.
The exchange rate today is .979
In Bottineau North Dakota that puts
14% spring wheat at $8.80 CAD
12% winter wheat at $7.27 CAD
In Berthold ND
14% spring wheats at $8.90 CAD
Winter wheats at $ 7.07
14% spring wheat is $ 8.63 CAD
12% winter wheat is $ 7.05 CAD
At my local Cargill today...
#2 13% spring wheat is $8.60
#2 11% winter wheat is $7.10
-All of these prices are for off the combine delivery.
But wait a minute there, I'm comparing #2 grade wheat up here with #1 grade wheat in the states. Well as of today you can tack another 20 cents onto those #2 prices to get the apples to apples comparison.
Conclusion: For the first time in my farming career we are getting at least as good a price for our wheat as the Americans and maybe even just a little bit better. No need to ship it too the states. The price, as predicted, has come to us. And... did I mention this is for off the combine? An option we never had before under the old monopoly system.
posted Jul 12, 2012 17:26
Oh my.... How could we have been price oppressed for so long, and our masters so sure that the CWB was our salvation and that Western Canadian farmers were well served by CWB price premiums.
Just like I had said; there were some relatively small groups who received special CWB entitlements (and they were vocal supporters); then there were the CWB management teams and their special friendly farmer supporters; and the rest was done on the backs of western Canadian farmers.
posted Jul 12, 2012 18:55
So for those of us that have a significant amount
of inventory at all times, just where is this risk
willie? For the first time in my and my fathers
career we can cashflow next years operating with
stored wheat/durum at harvest paid in full. No
need to worry about growing this crop willie. No
pressure to sell anything. I know i know the tax
man cometh. :-)
And we have competitive prices with Ontario wheat growers as well...
How could this happen?
All when world wheat prices were supposed to colapse... because the CWB 'single desk' isn't here to hold the world wheat market to account!
How could this happen?
Why isn't all wheat at $4/bu... and Canola/Peas/Barley all collapsed because the CWB isn't here to hold these prices up? We have a good crop here in western Canada I am told... the big grain companies must be in a scheme to pay us too much... so they can boast to shareholders how much money they just lost... and GAVE to 'designated area' grain growers needlessly! How many grain co CEO's will lose there jobs... for paying us too much Wilagro???
posted Jul 13, 2012 0:21
TOM4CWB: You guys read too much into what I said. All I was pointing out was that the prices quoted are a bit premature as our harvest hasn't started yet and we have a ways to go.
Geez, the old initial CWB prices were only a portion (I believe about 65% of potential final price with on-going periodic adjustments) YET comparisons were made with American cash prices which never did make sense.
At least today's price comparisons between the two markets make more sense. On adjusted basis the two markets should be fairly close...time will tell although some of the regulars on here will blame the CWB for every discrepancy (plus OR minus) no matter what.
posted Jul 13, 2012 0:31
Wil you know that I have done many price comparisons through the years. They are not that hard to look up in the Agriville archive. I never took a wheat board initial pool price and compared it to a US cash price. Never.
CWB fixed price contracts to US cash prices, yes. Final pool payments to the average cash price for the same time frame and grade, yes. They were apples to apples comparisons and the old monopoly came up short time and time again.
posted Jul 13, 2012 0:37
As to the prices being "premature". You can lock these prices in TODAY. You don't have to wait for harvest if you think these are good prices.
But that's besides the point. The point that you are evading is that we are finally getting the same price on both sides of the border. We are not getting a heavily discounted price like we did under the monopoly.