February 2010/11 PRO Released Today

[charliep]

The old crop PRO has been released today.

Wheat, Durum and Feed Barley Rise in CWB February PRO
Winnipeg -- The CWB today released its February 2011 Pool Return Outlook (PRO) for the 2010-11 crop year. Wheat values are up between $5 and $13 per tonne from last month's PRO, depending on class, grade and protein level. Durum is up between $1 and $5. Malting barley is down $1 per tonne, while Pool B feed barley is up $3 per tonne.

[URL="http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2010_20110224.html?OpenDocument&CropYr=2010-11"]Feb PRO[/URL]

First new crop PRO (2011/12) will be released next Monday. Good conference and a chance to meet others in the industry. Will put in a plug for World in Winnipeg. Will see you there if you go.

<a href="http://www.cwb.ca/public/en/newsroom/events/grainworld/">Grain World</a>

[charliep]

will note the real numbers for feed grains are not the PRO but the prices you can be paid on delivery.

Feed wheat PRO $245/tonne. 200 % EPO - $238/tonne. Almost no volatility in the EPO values.

[URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/epo/epo-wheat-2010-feed-20110224.html"]fd wht EPO[/URL]

[charliep]

Feed barley ("B" pool) - $238/tonne port. Feed barley EPV - $231/tonne port.

[URL="http://www.cwb.ca/public/en/farmers/contracts/guaranteed/#feed"]fd bly epv[/URL]

There are still significant differences between the CWB values and the prices being paid in world markets.

[malleefarmer]

can you put a farm gate price on those for me? For someone who has 200 km frieght and all charges etc off.
For the feed wheat and feed barley and i will do a comparison but im aware i have far less frieght

[charliep]

For an western Canadian farmer that is anywhere from 1,000 kilometers to
2,500 kilometers from port, the CWB deductions are anywhere from $50 to
$60/tonne for wheat and $60 to $70/tonne for barley. To get to farm gate,
you would have to include about another $10/tonne trucking. The trucking
will vary with location. Some grain companies offer trucking incentives.

Working the numbers, a CWB farm gate price for feed wheat would be $185
ish ($5/bu) and $170 ish ($3.60/bu) for feed barley.

[Burbert]

TRUCKING $10.00/T. Reality check in
order, seeing this phoney, baloney number.
Get real Charlie P. Grain company
incentives, get real, nobody, I repeat
nobody, pays anything anymore, wink, wink,
wink. Ifn you won't pay, I won't pay ha,
ha, ha! Only incentive EVER paid now, is
by the CWB............

[charliep]

What is an appropriate farm to elevator trucking cost (commercial rate)?

[btjadenlepp]

$8/t, give or take $2/t.

look forward to catching you here next
week!

[charliep]

From a newsletter I get, current international feed barley prices $285 to US $300/tonne FOB exporter (Aussie, EU, CWB). CWB indications at the top end. Corn $300/tonne at the Gulf.

For Alberta, $300/tonne FOB west coast equates equates to about $215/tonne back at the local elevator. $15/tonne fobbing (loading vessel), $65/tonne for CWB deductions/costs, $5 for miscellaneous. My math tells me there is about $45/tonne difference (buck a bushel) between what is being western Canadian farmers and current international prices.

Maybe Burbert can explain the difference. I recognize that the current GDC is supported by a early payment value with a top up later on but there is a lot of money on the table in terms of domestic versus international prices. It is something real barley producers should hold the CWB accountable to.

[malleefarmer]

unfortunately freight is your real killer over there, from farm to terminal

[charliep]

Western Canada is a high cost shipper to world markets. In the case of
barley (even at current high prices), 1/3 of the international price is
consumed with transportation/logistics. Lower price periods and this
percentage goes up.

[furrowtickler]

Bring back the crow !!!!

[mbratrud]

I like how they reduced Malt by $1 per tonne....Sheesh. Better be a pretty Fancy Number in Mondays 2011 - 2012 PRO or Barley Acres will get Hammered, Especially if we See a Number close to $8 for Wheat and Durum.

[bucket]

What good are pro's when you can't write a contract with them. The PRO's are no better than ass wipe.

Durum acreage should go through the roof with a PRO and then by the time it is time to write a contract with the cwb, they can lower it by 150 a tonne. Just like 09-10.

If you think there is a shortage of barley acres, grow and hope like hell the government gets rid of the cwb. Its as productive as hoping the PRO's are reflective of future pricing.

[BTOfarmall]

Char,

$10 per MT will get you quite a ways around here. Most Comedian farmers don't shop around fer da best buyer of grain and gist ship to dare local elevator cause its work to call around. So you wood be lookin at $3.75 - $5 per MT. Ya some git truckin incents, big deal, da elevator makin that all back wit 112 car spots plus more. Elevators don't work fer nuttin and give none of dare profits back to You's. Gist sounds good to git yer Grain. Works like a Charm. Why you tink dey shuttin down all dese Elevators over da decades??? Make You's pay fer da freight now & dey save.....

Unfortunately walleeframer yer wrong. Freight killer is Tom's Buddies at CP & CN. Got Comedia on Lock, One Big Cartel up Here.....