Portland DNS vs CWB Vancouver CWRS

[TOM4CWB]

Charlie and Lee;

Portland, OR - Thu, Sep 8, 2005 - USDA Market News

Portland Weekly Grain Review Part 1…

Bids for 14 percent protein US 1 Dark Northern Spring Wheat for September Portland delivery ended the reporting week mixed from one cent per bushel lower to mostly one cent higher than last Thursday's noon bids.
Exporters were using a protein scale of four per each 1/4 of a percent protein, up from 14 to 15 percent protein, while the scale down from 14 to 12 percent protein was eight cents per each 1/4 of a percent protein. On Thursday, bids were as follows:
For September delivery 4.82 to 4.84, mostly 4.84;
First half October 4.80 to 4.84,
last half October 4.80 to 4.84;
November 4.74 to 4.84; and December 4.74 to 4.84.

If we use the C$ @ 1.18, and average the wheat value @ $4.80US$ or $176.368 times 1.18C$ that equals $208/tC$

I was told numerous times, and experience proved, US 14px is equal to or lower than Canadian 13.5 protein.

So, the CWB Daily price in Vancouver Canada @http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/daily_price/dbpc-wheat-2005-20050908.html

is $184.39/t for Sept 8/05

We are still short almost $24/t to be at par with US PNW prices Charlie, WHY?

What happened to CWB claims of premiums to US DNS wheat?

[TOM4CWB]

Now for Winter Wheat;

Bids moved higher in spite of slightly lower Kansas City
December wheat futures. Moderate to good exporter demand for hard red winter wheat to fill waiting vessels supported bids in slow trading. Bids for 11.5 percent protein hard red winter wheat were as follows: September 4.25 to 4.28, mostly 4.28, October 4.28 to 4.30, November 4.28 to 4.32, and December 4.28 to 4.34.

If we use $4.28US$ or $157.14 times 1.18C$ or $185.42/C$/t Portland

CWB DPC No. 1 Canada Western Red Winter $156.01/tC$ Vancouver Canada

Almost $30/t missing here.

[charliep]

Does anyone have a good understanding of how the daily pricing contract prices are calculated other than the general concept of using elevator points just across the border?

How many of you signed a contract (even if it is just 40 tonnes)?