Please tell me - what is so bloody sacred about the CWB?

[SASKFARMER3]

I to agree wilgro please explain in a open discussion why the CWB is their for you. If they are you should be as passionate as I am about getting the wheat board. I give examples of what other farmers in South are getting and what farmers in Ontario etc are getting. Show me how the CWB works for you. Here is your chance. Then if its reasonable I can judge it like you judge the rest of us.
Simply I would like a world where I could do as I like and You could have your CWB to help you.

[SASKFARMER3]

Here is why I dont want the CWB.
Going with a relative today to Bottineau Farmers Elevator since we are not going to harvest because of rain and sleet went for a drive. Here is what he is getting for #2 Durum from Farmers Elevator not the CWB.
Delivery Date Basis Month Basis Cash Price
Sep 30, 2007 NONE 0.00

Settlement price $9.20 a Bushel.

1256 Bushels x $9.20 = $11,555.20 US

Now me the Canadian farmer delivering to Cargil or VIAGRA

1256 x 2.97 (PRO is $8.49 - 1,50 freight = 6.99)= $3,730.00 now I have to wait for $5,049.00.
$8,779.00 total to me from CWB fall of 08.
Difference for people with IQ like Benny $2776.00 less thanks to CWB.
Now take US dollar and add $401.00 for that difference I am out $3,177.00
Also took a sample of My #2 in Canada the guys looked at it and figured it would grade a #1 and its 15.6 protein.
Now My reletive feels the 9.20 is excellent for him for cash flow so he is selling all his production.
1000 acres at 47 bus = 47000 bushels x 9.20 = $432,400.00 check is going in the bank next week
Canadian way on my farm have to deliver what CWB is calling
25%
11750 bushels x 2.98$ = $35,015.00 now and wait and wait and wait till fall of 08 for the rest have to take out cash advance to cover bills etc.

[wilagro]

SASKFARMER3: The pooling takes time in order for calculations to be finalized. What could be plainer than that.

If you don't like "pooling", then work towards eliminating it. Tell your CWB directors that you want it stopped. If you get enough support, I am sure they will kill it.

[BennyHin]

Saskfarmer3:

Since you like to measure a pool return (or fixed basis price for that matter) to a conveniently hand-picked US spot price, why don't you instead provide us with a real-time marketing plan for this year so that all of us can measure your extraordinary ability to beat a pool return every time.

For example:

Lets assume that you can deliver these fictitious tonnes to a US elevator without ND and MT farmers shooting out your tires.

Lets also assume you have 1000 tonnes of #1 13.0 durum, and 1000 tonnes of #1-13.0 red spring to sell.

Now whenever you make a theoretical sale between today and July 31/08, you have to post your selling price on this website on that day.

I'll even give you the benefit of the doubt and assume you would not have pre-sold anything this spring / summer at much lower values, in a "free-market" environment. This is a big gift to you.

Also remember to subtract trucking costs and or corrections for rail freight differences for shipping to the pacific north west using US rail, versus cwb deductions from your shipping point (please remember to include trucking premiums to Canadian elevators).

Then on July 31, we will compare your averaged selling price to the pooled returns.

Thanks,
BH

[wilagro]

As for the rest of you...

"So if The Four Horsemen of the Apocalypse (Burbert, BennyHin, Wilagro and Agstar) can't answer, call someone who can."

Better start calling the CWB for answers...not too much discussion except for the antis piping in ONE AFTER ANOTHER AFTER ANOTHER...not much point explaining as you wouldn't believe anything anyway. For six years I have been reading this forum and I see no end or resolution to the questions you keep asking. WE "four or five horsemen of the apocalypse" as you state, are not the CWB. Send your questions to THEM.

[BennyHin]

SK3: Clarification on previous post: the "Fictitious" tonnes refer to the 1000 tonnes of durum and 1000 tonnes of red spring I asked you to price out by July 31/08.

good luck.

[Fransisco]

Lets try to get this thing on track again.

***Please tell me - what is so bloody sacred about the CWB that you can't see its shortcomings?***

[chaffmeister]

wilagro: you say "not much point explaining as you wouldn't believe anything anyway"


Try me.

[Fransisco]

Benny I take it from your posts and your challenge that you think that CWB pooling strategy gives you (and everyone else) a superior return.

Is that a fair assesment of your position?

Is <b>pooling</b> what is sacred to you about the CWB?

[chaffmeister]

BennyHin:

Using the "Easy Button" to out-perform the CWB:

1. Use a non-CWB system such as the one used for canola. Price is used to attract grain into the system or to ration demand for the system. This ensure competition and lowest possible cost of doing business. You will immediately be ahead by about $20 per tonne.

2. Sell equal amounts every week - or every two weeks - or every month. Whatever. This way you will get very close to an average selling price for the year. Data shows that this alone will put you ahead of the CWB.

3. Use trailing stops when placing your selling orders in the market. If the price rises and you don't get tagged, you just keep moving your stop higher. Do this for each parcel of grain you want to sell. If the market is moving higher, accumulate them until they all get triggered at higher levels. Automatically you get better than average pricing for the year.

4. Make use of carrying charge signals in the market - to direct which delivery period you sell into. Even though you are selling equal amounts each week, they don't need to be for delivery each week. In the canola market, the price structure will often pay you to store canola a great deal more than your costs to do it. Take advantage of it.

5. When selling on a deferred basis (as in 4. above, look at selling the deferred futures first and then the basis closer to the delivery period. this will maximize the carry charges in the futures market PLUS pick up the typical seasonal basis appreciation.

If you follow these simple steps closely and diligently, I guarantee you will out-perform the CWB every time. this is because the CWB won't and/or can't do them.