Open Market for wheat went up $1.00/bus. after the CWB removed itself from the market. Ummmm was the price spike because of the drought shorten supply, OR?
Or could it be because the CWB and the AWB control at least 40% of the worlds export wheat. This large percent of exportable wheat that everyone in the world knows that is there puts a weight on the open market price of wheat. The knowledge that the supply is there, and is being held by state monopoly grain confiscaters who have no financial risk involved in that supply management, would hold the open market price unjustly low due mainly to the guaranted supply factor that the boards have with their buyers.
If the CWB gets out of the market, buyer will bid up to guarantee supply. Farmers are not good at giving up there supply unless it is confiscated or the price agrees with their risk management.
The CWB obtains a preminium for 25% of our wheat because of its quality and because of some quality buyers. (Most grain handling companies would pay you a bigger premium for quality because you wouldn't have to share it with a no account neighbor that we all have.) The other 70% is sold on a we wouldn't be under sold aggreements to who ever to gain world market, under agreement to pay some day maybe. The resulting price to the farmer is a below average open market price.
You would't trust your bank account to your neighbor so why would you trust a bunch of bureaucrats with your wheat?
Vader you want me to run with a bunch of losers at the CWB level.
Or could it be because the CWB and the AWB control at least 40% of the worlds export wheat. This large percent of exportable wheat that everyone in the world knows that is there puts a weight on the open market price of wheat. The knowledge that the supply is there, and is being held by state monopoly grain confiscaters who have no financial risk involved in that supply management, would hold the open market price unjustly low due mainly to the guaranted supply factor that the boards have with their buyers.
If the CWB gets out of the market, buyer will bid up to guarantee supply. Farmers are not good at giving up there supply unless it is confiscated or the price agrees with their risk management.
The CWB obtains a preminium for 25% of our wheat because of its quality and because of some quality buyers. (Most grain handling companies would pay you a bigger premium for quality because you wouldn't have to share it with a no account neighbor that we all have.) The other 70% is sold on a we wouldn't be under sold aggreements to who ever to gain world market, under agreement to pay some day maybe. The resulting price to the farmer is a below average open market price.
You would't trust your bank account to your neighbor so why would you trust a bunch of bureaucrats with your wheat?
Vader you want me to run with a bunch of losers at the CWB level.
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