WHEAT WENT UP today to set a contract high in May/06 Kansas City at $4.50. Nearbys closed below the day's high but new-crop months have also been showing strength and closed above $4.50. Traders noted deteriorating conditions in the HRW wheat belt. Commodity funds were buyers. Reports that Iraq will buy US wheat were also bullish. The Iraq grain board said yesterday it will buy US, Canadian and EU wheat. Some in the trade speculated that up to a third of the business could go to the Canadian Wheat Board because of highly competitive prices.
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Vader;
The whole US market has been rising for weeks... as the buyer must buy the grain from the industry... including the farmer.
The market is bid up.
How much will the CDN wheat market rise... or the CDN farmer be able to extract from this business?
With the CWB, Allan Oberg claimed the sales dept. are proud:
Because he claimed the CWB sales Dept. doesn't give a volume discount in the domestic market.
WOW.
THe Domestic wheat buyer never has to bid the grain out of the farmer's hands.
On top; Obviously export buyers get volume discounts!
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