A (true) tale of 2 super Bs

[FarmRanger]

Fall of 2009, out of the same bin (southern Alberta).

1st super B went to the CWB, sold as 1CW Red Winter.
Dropped in the pit, initial payment $2.67 per bushel(net all trucking incentives, freight,elevation,etc.), plus 3 payments totaling 1.12/bu. <b>for a grand total of 3.78</b>, without subtracting any interest cost for waiting until now for the final payment.

2nd super B went to local feeder, sold as feed wheat.
<b>Cash price of 4.14/bu.</b>

CWB 1CWRW versus feed = MINUS 36 cents per bushel plus interest.

No premium to the world market.
No premium to the local feed market.
No premium...period

Beyond bizarre that we are forced to tolerate this.

[SASKFARMER3]

Sold half last year and forced to keep rest over from CWB 25000 bushels at 4 I guess now in two days.
Sold other half of last years crop last week for feed and received $5.25 a bushel and done. That's my poor marketing skills for profit of $31,250.00 in my pocket. AH why we keep putting up with this shit.

[wd9]

Because the government won't do anything even though they say they will.

[Lifer]

It is bizarre. So why do we tolerate this system?

[SASKFARMER3]

I just dont know why!!!!!!!!!!!!!

[fjlip]

Timid Canadians? eg. I'm sorry I even had that bad anti-CWB thought.
I say again, only hope, a Cons majority. Might give them balls or nerve or a statesman attitude.

[cottonpicken]

A con majority will not change anything.

[stubblejumper]

why didn't you sell it all to the feeder?

[SASKFARMER3]

Because the 25000 to CWB was 15.5 Protein #2 Durum.
Yes they really do a fine job dont they.

[charliep]

For what it is worth, the Montana Wheat and Barley Committee puts has a spread sheet with historical winter wheat prices.

My look for October 2009 (you didn't say when) was $4.00 to $4.50/bu for 11 protein, $4.25 to 4.75 for 12 protein and $4.50 to $5.00/bu for 13 protein.

Will let you down the appropriate location and date.

[URL="http://wbc.agr.mt.gov/Producers/pricing_historical_mt.html"]montana wheat prices[/URL]

[charliep]

Will throw up one chart for the period you were making your marketing decision. You will have to look for the CWRW chart.

The PRO October 2009 was about $192 ish - very close to the actual final payment (from what I can see from the chart).

The fpc was a good $20 to $30 discount although it did offer pricing opportunities in the spring.

[URL="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/2009-10/2009-10fpcbpccharts.pdf"]charts[/URL]

&lt;a href=&quot;http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/2009_200910.html&quot;&gt;October 2009 fpc values&lt;/a&gt;

[charliep]

Hate to be the last poster in a thread (discussion killer). Only highlighting lots of information to review a pricing decision.

Perhaps what is interesting is that stubblejumper is promoting a open market option for winter wheat and even recognizing themselves the challenges of smaller volume wheats in providing price/delivery signals in a wheat pooling system dominated by CWRS. That is at least the beginning of discussion toward something different.

[FarmRanger]

<i>”why didn't you sell it all to the feeder?”</i>

I'm asking myself the same question. I'm asking myself why should I have to? If the CWB can't/won't be competitive, why

Delivered to the CWB during harvest (Sept. 16). Looked at my cheque, and I sold the stuff to the feeder later. From the links that Charlie gave(thanks Charlie), it looks like the FPC would have given me 4.74 less all the usual charges (net 1.12) for $3.64 in my pocket. So my 3.76 from the pool paid a bit of interest, so I'll call it a wash between the FPC and the pool price.

The north central Montana price on the day (December 29) I made the deal with the feeder was $4.28/bushel. That same day the FPC would have paid me $3.74.

The elephant in the room is why it is somehow a good idea that the CWB is allowed to expropriate my winter wheat if it's a #1, when they can't even beat a feed price, let alone the world price? <b>The only power the CWB is exerting is its power to <i>drive the price of feed wheat down</i>, by forcing more good wheat into the feed market.</b>

[TOM4CWB]

Farmranger,

The CWB historically is told it MUST 'ProBono' look after the livestock/SM5 Industry and make sure they have low cost feed!

Remember what I pointed out?

What duty of care the CWB has to grain growers in the 'designated area' vs the livestock and supply management sector? The CWB can and does subsidise feed grain prices by expropriating our grain at less than world value... and providing it to the domestic market.

Grain Stock switches happen every day between the CWB and grain companies. Who do you think the margins come from... to make this a big profit business? The grain grower can not even see what is happening behind all the smoke and mirrors?

What does the CWB's - "and other producers as appropriate, its customers' and the public's interests." mean in common plain language to the CWB?

Background:
[CWB Directors] “Code of Ethics (http://www.cwb.ca/public/en/about/people/board/)
I. PURPOSE AND OBJECTIVE
A. The purpose of this document is to establish standards of conduct expected and required of all Directors of the Canadian Wheat Board (CWB). The objective is to enable the CWB to effectively achieve its mission by maintaining a reputation for the highest standard of public trust and confidence in serving western Canadian wheat and barley farmers and other producers as appropriate, its customers' and the public's interests."