CWB sells wheat at $30 tonne discount

[parsley]

AS:

I.Q.

[wilagro]

Well...AdamSmith: Suppose you have some wheat for sale at $222 per tonne and I say that I will take all that you have at $200 tonne providing that you sell me 100,000 tonnes as your neighbour down the road has offered to do. Would you sell? Suppliers discount prices all of the time for substantial amounts/quantities. I purchased merchandise for years and I know how negotiations work when deals are struck.

Put yourself in the boots of the CWB salesman and see how you would do things differently. They have to compete against other countries or didn't you know this?

[Incognito]

Then change the name to the Cheap Wheat Board...

bend over for 100,000 tonnes?

did you feel that premium?

How does that KY with sand feel - Willy?

[just_wondering]

wilagro are you proving Adams point point there is no power in the single desk we all sell at a world price the difference being freight and basis levels you asked if he was the CWB what would he do?
I'll answer the question if the price is $222 a tonne charge that don't just discount until you get the sale because you don't have a replacement cost.
we are all competing against other countries and yet with the CWB we are doing it with our arms shackled.

[Burbert]

Yeah, lets all do our selling on our own, screw the brokers. We'll be rich, IF we don't cut each others throats! Now there is an idea worth discussing. Who said I have nothing to contribute for you marketing gurus to contemplate?

[kamichel]

Myself as a farmer grain seller I would not sell my grain for less to a feed mill when the price they have to pay is say 4 dollars per bushel, if the price is 4 then the price is 4. It looks to me like the
Brazilians need wheat. Does the Wheat Board call this building markets because we do not normally sell to them? At the moment there is a shortage seemingly developing , why undercut someone that is not there. Why not pay more for our supposedly higher quality wheat that we have ever grown in past 10 years. What about the wheat board service? Is it worth anything? Burbert we are not all here to stampede to sell our grain off the combine.

[gregpet]

Burbert, better than letting the CWB cut our throats for us as they have been since their inception.

[chaffmeister]

wilagro:

You are absolutely right when you said the following in reference to the CWB:
<i>Suppliers discount prices all of the time for substantial amounts/quantities.</i>

But be very careful. I know someone quite well that said the exact same thing about the CWB regarding sales on malt barley. He actually wrote it in a study. The Sparks Barley Study of 2004 to be exact. And in response, the CWB wrote a couple of "threatening" letters to the president of Sparks. I wouldn't want to see a good CWB supporter like yourself get on the CWB's bad side. Trust me, I know from personal experience, they can be pretty vindictive.

Also, you're right about the "trade" discounting sales. But to make sure that idea is in context, keep in mind that when they do it, it's because they are already long the product and maybe they need to move it for commercial reasons, or some other reason like that. But - and this is important - it doesn't set the price for farmers, or even for the rest of the trade.

[chaffmeister]

Oh yeah - and Incognito's hit the nail on the head.

Two weeks after their own bullish weather report?!

If you discount at all, it's (as I said earlier) for commercial reasons, or you are very bearish (and you think you'll be able to replace it at lower prices later) and are anxious to get a sale on before the price drops. But its risky business because you may be wrong and your competition will be happy to prove it to you if you are wrong.

[chaffmeister]

Sorry - I meant two weeks <b>before</b> their bullish weather report.