CWB Sale

[bucket]

I am living with the new reality.

But this isn't quite what I was expecting.

I expected open and transparent reporting of grain sales, vessel reports, rail car unloads etc. that would help farmers and the industry make good business decisions.

BTW that is what they have in the states - a true open market. Not only in marketing grain but industry transparency.

Instead we got the opposite extreme of the spectrum.

Extremes on either side makes the system fail.

[MBgrower]

Bucket, actually the true open market is in canada, where the government does not legislate private graincos and railways to report weekly purchases, sales and unloads.

[bgmb]

What some of you guys dont sem to understand is that just because the government gets out of the way does not mean the market will function correctly or that you will have "perfect competition". Google oligopoly and read the definition.

[bucket]

mbgrower

SO what do you call the system in the states, where incidently, we get the majority of our prices from????????

Open means the system is transparent, only then can it function properly.

If the americans had the system we had in Canada, there would be civil unrest worse than what happens when an african american gets shot without cause.

[MBgrower]

Understood bucket, but there are many who mistakenley believe a true open capatilistic market is one with minimal government interferance. Ritz and harper are good examples.

[bucket]

Open market?

Where in the world is one operating?

canada uses the US to price grain.

Their system has a transparent reporting system which was required after what happened in the 70s.

You have to have some level of transparency to make it work.

For guys on either side in Alberta and manitoba it's easy to talk - you know your grain is easy picking for railways with or without government involvement.

But I really don't know why I waste my time. If the new open market is better good for you.

This isn't what I expected.

And when I sign contracts a year in advance to be delivered a month late it pisses me off.

[CptnObvious]

I am in favour of the open market. I am also in favour of unicorns and put them in the same category; existing only in the imagination.
That said, I would much rather participate in a market in which I had some authority( old CWB) than one in which I was only one beggar among many( now).
The FNA may have been the best of the lot but even if I was a member I would have no influence over my own destiny.

[TOM4CWB]

CptOB,

In your mind... did the CWB do anything to keep prices up.

Canola Just rose $1/bu because the Canola farmers in western Canada/soy growers in the US... decided... that they would not sell for less. And so the world of grain marketing goes.
Subsitution, competition, and cost of production all determine much more than anything else in determining our prices. NOT any concept of a 'single desk' that had 1 tenth the effect of any one of the three (Subsitution, competition, and cost of production) noted above.

The CWB could add market transparency if they decided that was more important than building an empire. Sadly... as before... management still does not get why they need to be a marketer of western Canadian grain!!!

Cheers!!!

[farmaholic]

Tom. Determining the value of grain is determined by supply and demand, competition or lack of for the supplies and yes even substitution if prices get too high. But where I think you're wrong is COP, I really doubt it matters to the buyers what it cost me to produce my crop, they only want to pay as little as possible...

[blackpowder]

I'm sorry Freewheat, but you're full of shit.
I think your only summation that makes sense is that your area has been very hard hit in successive years. And in the valuation angle there might be the opportunity?