Viterra Feed wheat vs CPS prices for 2012

[Ronski]

Just looking online and local Viterra
has feed wheat for 3.70 and cps for 5.85
in November. Thats a pretty big spread?
Not saying it isn't deserved in the new
reality cause I just don't know, yet.
What are others thoughts on feed prices
for 2012? There's good money in CPS but
sub 4.00 feed wheat doesn't work in my
operation (feed barley is 3.90).

Thanks

[skip]

Where are you located Ronski?

[Ronski]

Just north of Red Deer. Viterra and Louis
Dreyfus are closest and easiest.

[craig]

Ronski
My understanding is that Viterra needs
forward sales to bring prices better in
line with reality. Low values for feed
would indicate either lack of forward
sales or surplus of feed wheat currently
on the books. Would assume with U.S.
border open that feed wheat should track
better with corn.

[charliep]

One of the things that needs to happen is everyone needs to get a better handle on how grain companies establish prices and manage risk. My understanding (you guys may correct me) is that most companies are offering flat price deferred delivery contracts (no basis contract option yet). Once the grain companies become more visible with their pricing (including the ICE wheat contracts that start trade January 23), I suspect questions like the post topic will become easier to answer.