Bet on the CWB

[vvalk]

101, I would look at loss of value during the 'sale,' loss of protein premium especially during '12-'13, lower port price relative to the U.S., and the really really big one: excess basis.

Excess basis? Really ctpnobvious? Again a cab supporter who doesn’t really farm. You don’t think the CWB only allowing you to sell 40% of the wheat or durum and forcing you to store 60% till the next year doesn’t effect basis levels. I don’t know why I even respond but how dumb do you have to be

[grassfarmer]

Farmers have more options than ever to take advantage of good prices and hedge themselves against bad prices.

If your struggling or just learning, talk to your local grain buyers. Most have info nights or marketing meetings where they or consultants go over the markets and various strategies.

Not touching the wider topic here but does anybody really believe this quote? That farmers can learn how to get better prices - taught by the people who are going to pay you the higher prices?? Really?? can you say "conflict of interest" or "when hell freezes over"?

[farmaholic]

Not touching the wider topic here but does anybody really believe this quote? That farmers can learn how to get better prices - taught by the people who are going to pay you the higher prices?? Really?? can you say "conflict of interest" or "when hell freezes over"?

.....like when, just deliver your grain and take a position in the market....your grain is gone and the pricing risk remains with you! With no need for the holder of the physical product to increase bids....but you're supposed to play around in the futures market. **** me!


I will stay out of the rest of the debate. There's been pros and cons. I've moved on.

[Hamloc]

I get so tired of socialist's and their belief government can do it better. So I dug out my ledger book from 2009. 2008 was the last year I had all number 1 wheat up until this year. I do not remember what the protein was and prices quoted are initial prices only. The wheat sold in the 2008-2009 year got an initial price of $5.22 a bushel. The wheat sold in the 2009-2010 year got an intitial price of $3.56. Unfortunately in my ledger books I didn't trace back the connection between final payments and initial payments. But waiting over a year for final payments never made me feel warm and fuzzy. I much prefer the present system as I recieve full payment on the day it is delivered. I also have some input on what I recieve for my grain. Not an economic analysis Capt. Oblivious but some real numbers, I don't see you providing anything but rhetoric!!!!

[BreadWinner]

Ive got one for you Cptnobvious. Did the farmers own the CWB, Ships, Buildings, rail cars, etc?
Why were these items purchased and deducted from my grain Cheques? Why were farmers fooled into thinking that this entity was owned by them?

[blackpowder]

Interesting that a post on this topic still brings more response than something important. I guess I'm still passionate about it.
Anger still just under the surface i guess.
Good air in, bad air out. Repeat.

Wonder who else reads this site?

[Daylate]

1 Oil off rail
2 open running rights, use rail like planes use airports
3.pull grain to ports not push.
(Market accordingly with less speculation.)
4. Penalties for off target movement with funds going directly into infrastructure that's involved in getting grain into ships faster.
5.quit allowing companies to grade at port. Have all grade testing done at inland terminals. (just like grain going into the states)
6. Do whatever it takes to get this done.... unfortunately nothing short of separating from the east will work.

[Rareearth]

Daylate you have my vote for PM!

[Integrity_Farmer]

I get so tired of socialist's and their belief government can do it better. So I dug out my ledger book from 2009. 2008 was the last year I had all number 1 wheat up until this year. I do not remember what the protein was and prices quoted are initial prices only. The wheat sold in the 2008-2009 year got an initial price of $5.22 a bushel. The wheat sold in the 2009-2010 year got an intitial price of $3.56. Unfortunately in my ledger books I didn't trace back the connection between final payments and initial payments. But waiting over a year for final payments never made me feel warm and fuzzy. I much prefer the present system as I recieve full payment on the day it is delivered. I also have some input on what I recieve for my grain. Not an economic analysis Capt. Oblivious but some real numbers, I don't see you providing anything but rhetoric!!!!

Useless nothing post Initial Prices? The initial prices were low because of that sick puppy Ritz. Harper and the grain companies lap dog. In fact the last 6 years that the CWB operated were the best years on our farm. Remember in that period of time our dollar was at or near par with the US. So that current $6.00 a bushel 1RS wheat is only $4.80 a bushel. The $4.20 a bushel 1RS 11 Pro is only $3.56 US

[Integrity_Farmer]

Is anyone out there willing to bet money( or anything, really) on the effect of losing the CWB? One of the other threads here is about low cash flow. I calculate we western Canadian farmers have lost about $10 billion because of the end of the CWB and am willing to cover bets on the subject.

If you think ending the CWB was a good thing and that we have made money because of that( other effects factored out) and can prove that together we have made even $1 more, you win. I am confident losses are in the several billions. That's a very small hurdle for you and a large one for me. Any takers?

In the past two years (13/14 14/15 CROP YEARS0 Western grain producers lost an estimated $6.5 billion because of the loss of quality-assurance, and logistical errors in grain handling, transportation, and marketing causing increased export basis after the elimination of orderly marketing CWB. No other economist has refuted Grays work
(Richard Gray, Agricultural Economist, University of Saskatchewan) report for sask wheat

[jamesb]

In the last 15 years of the CWB lots of us were going through the buy back so we could sell into the US and their higher prices, The CWB gouged the farmers doing the buy back but it was fairly easy to figure out if there was a profit in doing it. Watch the US prices now and you dont see much of a difference between our countries. The prices are for the most part even. What i have seen is terminals like Ceres in North Gate jump on opportunities to rail grain into the US or Mexico if it made sense. I see this happening a few times a year. I farm within a reasonable distance from North Gate but I know of farmers in the Kindersley area that made good money shipping durum wheat there for export. Under the CWB this just wasn't a option for the most part.
For myself i have had to spend more on better market info to do make better marketing decisions. We have gone to a higher end service now but have tried lots of marketing info services that are completely independent from any buyers. Grain shark is a great one that is text based. I recall it was a few hundred dollars per year. There is lots out there. I would encourage those of you that dont wont to market their own grain to take a trial of some of these independent services and maybe you will change your mind?

[blackpowder]

Better yet, lets all agree that the $16B per year lost on the price of our oil and the increased competition for rail power created by extra oil, is something we can do something about today.
Let's hear I.F. and C.O. comment.

[macdon02]

In 2006 on my combine to customer course, that I paid for, the number quoted I believe was $4-$5/Mt for the entity to function.(Compared to what I have no idea because it had been over 60 years since open market, not sure if adjusted for inflation) X what 20 - 30 million metric tonnes = $80 000 000 ~ $ 150 000 000 that's going back to farmers instead of Winnipeg. High grain prices the last 6 years of cwb had nothing to do with whether we sold to then or not. Thank you housing bubble and credit rich environment so strippers could buy 6 houses

[parsley]

the cwb, an idea just so fuking wonderful that it was mandatory by federal law for western canadian farmers to have a permit book before we could legally sell any HRSW.

all you need to know is that ralf gudail threw western farmers in jail for doing exactly the same thing that eastern farmers took for granted. may the SOB rot in hell

I'll second that.

[furrowtickler]

Ahhh the three stooges....