US Wheat issues

[bucket]

stubble

The US farmer doesn't store grain but then again they don't wait a year and a half for their money. Or are forced into a lower price pool year like durum.

6 bucks off the combine beats 1.50 initial and waiting for the rest.

AND I know about the FPC that is currently running 50 cents behind the US elevator price.

[Fransisco]

And even if they do sell everything off the combine that doesn't necessarily mean that they're out of the market. Once you've got that cheque it's real easy to buy back the crop on paper and keep going along for the ride if you think it's going higher.

[bucket]

Unfortunately, we have to pay a bunch of leeches in winnipeg first.

[mustardman]

Francisco and the reason You don't cash your cheque and buy the crop back on paper is?

[bucket]

With what? the initials go to pay bills as much as it can.

Moron. The initial price from the cwb is an embarassment. Really, how do you guys continue to support it when the world is hungry for good quality grain.

[bucket]

Besides if a farmer has to buy paper to make money on his crop - why the **** do we need the cwb losing us money and paying a bunch of leeches in winnipeg?

[Fransisco]

On top of which you've got to be able to deliver the darn stuff before you can even get the piddly little initial which will cover diddly squat worth of the margin requirements.

[Choice2U]

Monopoly supporters always bring up the comment that the CWB is so smart selling over the year compared to US farmers because "most US farmers sell in the fall and miss the higher prices"...I am not so sure this is true but let's assume for the moment that it is...then maybe the US farmers miss these opportunities because they have very little storage. THUS, according to their comments....it would only make sense to assume that if Canada has allot of storage, we could take advantage of the higher open market opportunities and therefore don't need the CWB!!!!

[wmoebis]

I have always wondered why don't US farmers have on farm storage? Do they deliver then price later? Is there any US farmers reading AV. I'd like to here from you guys. We have CA,EU and Aussie.

Like Red Green says "Keep yor stick on the ice. We're all in this together."

[rosco]

They are beginning to build more storage on farm, but until now, the grain companies have built the storage, and they have captured the carry in the market. There is a grain elevator in Hutchinson, Kansas, that is a 1/2 mile long, has 1000 bins, and holds 46 million bushels. One in Salina, Kansas holds 20 million bu. By comparison, most of viagra's big concrete facilities hold about 500,000 bushel or about 42,000 tonne. The Hutchinson elevator is almost 100 times bigger. Years ago, the US government also built 1000's of bins for farmers to rent the use of.
Rosco
Rosco