August 1 Market Information

[charliep]

A couple of questions about the new world.

How many have held 2011 crop over into the new crop year? How aggressive are grain companies (including the new CWB) in sourcing these old crop inventories? All grades/protein or just the top end/high protein stuff?

What are the first offering of grade and protein spreads? Dollars per tonne or cents per bushel? How are the grain companies providing you this price information?

Will any of grain companies offer basis contracts? Off what futures? Is there even the mention of ICE Futures Canada wheat, barley and durum contracts in your conversation with them?

Do you or your advisors have a strategy for monitoring west coast wheat and barley values? Durum prices off east coast/Thunder Bay/Minneapolis?

[sddickson]

He's exercising a freedom that he would have denied his neighbors .
What do you call that...?

[TOM4CWB]

Charlie,

ALL OF THE ABOVE. Everything and anything. Old Crop is king so far... but space is getting tighter for the fall now. Programs are in place... plans have been made... ships have been ordered... Canola, Peas, and Wheat... now all coordinated together.

[wd9]

Its called a 500 dollar a day per diem
with other assorted expenses, flights, and
hotels, cabs....

[wakopa]

s*****on im on e-brandon right now

[boarderbloke]

Talked to a grain buyer today and was told $0.10/bus difference between #1 and #3 Winter Wheat, and they don't care what the protein level is! Paying so much a bus and that's it, end of story. The price is good though, over $7.00 for #2(most is grading #2 due to mildew or black point)
Their basis is about $0.50/bus higher than last years CWB, which seems high to me, but people are lined up to deliver, so that's the deal now. If people keep hauling the basis is bound to widen further, once the Aug car ordered are filled.
Would be a little pissed if I had exceptional protein, and there was no recognition for it.

[sumdumguy]

Sounds kinda corny to me Chuck, you?

[chuckChuck]

So why is the Canadian winter wheat price of $7 well below US bids in Montana for #1 hard winter wheat which is posted anywhere from 7.28 - 8.67 per bushel yesterday depending on protein?

[charliep]

Just curious on location, protein and likely market (feed, ethanol or export).

Montana prices are below. $8/bu for 11 % HRW.

[URL=" http://www.ams.usda.gov/mnreports/bl_gr110.txt"]Montana prices[/URL]

CWB deferred delivery contracts (Vancouver) are about $8.64/bu - 3CWRW less than 11 protein). Knocking off deductions $7 and $7.20 depending on location. CWB initial payments $6.20/bu with expected total payments another $2/bu or so - Vancouver. Total payments in country (best information today) $7 ish.

[charliep]

chuckChuck

Perhaps the difference is you can actually use US prices in decision and if the numbers work, deliver there. It is called arbitrage. I will highlight the conversation about feed supplies in the US. Don't know how much will move across the border but the US has the needs to import feed grains. I would be watching the California and PNW markets if I was grain company.