Chinese Wheat Auction Prices From Reserves...

[farmaholic]

Excerpt from "Weber's" newsletter and Reuters I guess....

China auctions 10,841 tonnes of wheat from state reserves - China auctioned 10,841 tonnes of wheat from state reserves at an average price of 2,489 yuan ($378.14) per tonne, according to an online statement posted by the national trade center. During the auction, one type of white wheat produced in 2013 and one type of mixed wheat produced in 2013 failed to sell, while a 2014 produced mixed wheat transacted at 10,841 tonnes with an average price of 2,489 yuan per tonne. (REUTERS)

Do the conversion, yikes, sell direct? If that is US funds it's even better than CAD.

[Klause]

9.75 at farm mid sask shipped to China. .... we will send container loads again this fall provided we have decent quality

[wmoebis]

Wonder if it was equal quality to CWRS or lower quality like CPSR/ CWRW?

[farmaholic]

Just sold 500mt of 1 CWRS 15 px locally. What Is the risk like Klause? Are you paid before shipping? Would be nothing worse than rejection on the destination dock and having to take less and hopefully find a new home for it. Bagged or bulk in container?

[farmaholic]

How many tonnes per container? Assuming bulk cargo shipping most cost effective? But I suppose putting something in empty containers on their way back to China is cheap.

[furrowtickler]

Just shows how bad we are getting screwed on wheat here in western Canada 👎👎👎

[Braveheart]

Our freight forwarder advises not to do business with China. They've had too many defaults.

[biglentil]

9.75 that would take out alot of canola acres. New rotation wheat snow wheat.

[wmoebis]

Auctions are sometimes buyer market sometimes sellers market. Wonder what reg prices are or is this how all Wht is sold?
If so how do they set price when they buy?

[Robertbarlage]

Is that really picked up at farm or is there freight to be stolen I mean taken off that?

[biglentil]

$10 a ton can often mean win or lose on a sale to international buyers, bulk ship loads rule.

[Klause]

That's what it works out to put into a container that CN intermodal can pick up.


You need to find a buyer, have a specific quality he/she needs, and then make a deal happen.


Meeting with a fellow from India, and another from China (who we made a prior sale to) later on in June/July. There's always risk, but it isn't that big of one if you use proper instruments of credit. This is also why we met up with our friend from Iran. That's a huge market, it has money but it needs food. If we can get into there, we will.

[wmoebis]

Wonder if a group of farmers could get together and organize a large sale and return all the profits back to it's members, less the cost of marketing?

Maybe we could even do it on bulk shipments, hire someone with elevator and terminal to process and ship it for them.

I know just a crazy thought!

[farmaholic]

I guess if you're willing to assume some risk and maybe do a bit more work, you might be rewarded instead of selling into a "blended down to the lowest common denominator generic market", were premiums for quality can be fleeting or non-existent.

[farmaholic]

I'm referring to the niche shipping not the large scale thing you're talking about wmoebis.

By the way, didn't "something" resemble that model in recent history.

Here we go.....The G3Predecessor debate.