Tom, among other things the CWB offered discipline, just exactly what you just said the Canadian canola growers and the American soy growers used to lift their prices. The unbeatable discipline of a legal and supported single desk would be most effective, would it not? No lone wolf to rip the bottom out of the market and ruin it for everyone else. Or target price contracts which the grain co.s are using to do the same.
Also:
When the AusWB ended the price of Aus wheat lost about $20/t relative to its' closest competitor( U.S. PacNorWest)
Just before it was killed our CWB did a 5 year study of Can/U.S. grain prices in the northern states. CWB grain was priced higher than local grain in those states 59/60 months.
Historically the protein premium of 14.5% over feed was about $80/t. The first year of 'market freedom' saw that drop to near zero.
Chinese and S.E. Asian companies which used to buy exclusively from the CWB are now unsatisfied and often look elsewhere( Read: Canada is losing market share and must offer lower prices to get it back).
If you think competition is good for the marketplace you are right. If you think the marketplace is here you are an idiot. We used to have one skilled and disciplined marketer squeezing the last nickel out of the global marketplace for our wheat( and making almost enough on interest rate differential to do it for nothing) and now we have several sellers whom our customers are telling us are unreliable trying to undercut each other for sales.
You know as well as I do that post-CWB prices, as a % of port price, are way, way lower than when we had the CWB. This was exactly why the CWB was brought back the last time. We was bein' robbed!
Tom, re-read your post bearing in mind that we do not know what you are thinking. Sometimes posts on discussion pages read like, "Seven minus fish equals green."
Also:
When the AusWB ended the price of Aus wheat lost about $20/t relative to its' closest competitor( U.S. PacNorWest)
Just before it was killed our CWB did a 5 year study of Can/U.S. grain prices in the northern states. CWB grain was priced higher than local grain in those states 59/60 months.
Historically the protein premium of 14.5% over feed was about $80/t. The first year of 'market freedom' saw that drop to near zero.
Chinese and S.E. Asian companies which used to buy exclusively from the CWB are now unsatisfied and often look elsewhere( Read: Canada is losing market share and must offer lower prices to get it back).
If you think competition is good for the marketplace you are right. If you think the marketplace is here you are an idiot. We used to have one skilled and disciplined marketer squeezing the last nickel out of the global marketplace for our wheat( and making almost enough on interest rate differential to do it for nothing) and now we have several sellers whom our customers are telling us are unreliable trying to undercut each other for sales.
You know as well as I do that post-CWB prices, as a % of port price, are way, way lower than when we had the CWB. This was exactly why the CWB was brought back the last time. We was bein' robbed!
Tom, re-read your post bearing in mind that we do not know what you are thinking. Sometimes posts on discussion pages read like, "Seven minus fish equals green."
Comment