durum

[bucket]

1.50 per bushel in truck freight to get it to the states.

Do it myself and I wear out the semi as I drive past over 10 concretes.

Yup brilliant. A real money maker.

[farmaholic]

That's arbitrage bucket.

[boarderbloke]

How does $10.30CND/bus. sound for #5? durum, 338g/0.5l light, frozen, some disease, great colour.

[Daylate]

If it's local and delivery soon take it and save the headache boarder

[bgmb]

Only one slight problem Braveheart the price should be the same up here, there is a cost to hauling 100 miles into the states with 30mt on a super b.

[bgmb]

farmaholic, that is not arbitrage if the market was arbitraging the price would be west coast port price minus freight and handling to your delivery point. A 20-30 cent spread would be understandable because no market if perfect.

Markets are not arbitraging because there is lack of competition/oligopolies in the grain buying and transportation industries.

[bgmb]

braveheart, you are close to the line good for you not a big deal for you. What about the guy in battleford sask or peace river alberta?

[charliep]

bgmb

So you are saying the durum markets western Canada sells into and the costs to get product to port positions is exactly the same as North Dakota? Our markets for durum remain east coast minus St. Lawrence costs for the most part or west coast minus costs. North Dakota would be US gulf price minus costs for mid quality to maybe some higher stuff. Western Canada and North Dakota go into the higher quality end North American semi lina market. If western Canada moved durum via the US Gulf, then you could likely make direct comparisons for the mid grades.

[charliep]

On your other comment, are you suggesting braveheart should give up some of their advantage because of proximity to the US border to farmers using some system like price pooling to support farmers in other parts of the prairies? Is not farmers who sell direct to the US not an advantage to other prairie farmers in that their is not shipped in the western Canadian grain handling system and therefore, not competing with everyone else for capacity?

[bucket]

If the rail system was working properly those markets would be available to most.

And at an advantage to everyone. Those that are close could truck and those farther away could use the rails. Same cost and logistically better as well.