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CWB Rejects 50% /30% of Wheat

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    CWB Rejects 50% /30% of Wheat

    Charlie / Lee

    What does this withdrawl signal send the rest of the world that produces wheat?

    Grow more wheat... those crazy Canuks are hoarding wheat one more time.

    More wheat will be grown/marketed in every other nation around the globe... this is a gift especially to the Ausie, US, and EU wheat farmers!

    All at the expence of my farm.

    Just like when the CWB withdrew from the US market when a little Tariff was slapped on at the border.

    CDN Softwood Lumber people didn't even blink. Now Canadain producers do not have to take years to regain lumber market share as the tax is removed!

    CWB monopoly marketing plans once again in the "single desk" suicide category.

    What have I missed guys?

    #2
    Sorry, that Should have been Rejects 50/20%

    Comment


      #3
      Where did you see this news item?

      Comment


        #4
        DTN Prairie Market Probe 11/23

        7th Article down;

        "CWB ACCEPTS ONLY 50% OF DURUM

        The CWB has accepted 80% of most grades and classes of wheat and 50% of all grades and classes of durum offered under 2005-06 Series A delivery contracts. All Identity Preserved Contract Programs are 100% accepted.

        The CWB says 2005-06 crop year presents challenging logistics, which have lowered early acceptance of wheat. Durum acceptance relates to large global durum supplies and an abundance of medium-grade durum worldwide"

        Comment


          #5
          There are those who see the glass as half full and those who see the glass as half empty.

          To suggest that these acceptance levels would indicate a complete lack of understanding of the CWB marketing system. Need I remind you that there are still the "B" and "C" series of contracts left. There is little reason to believe that the CWB will not accept all of the spring wheat before the end of the crop year assuming that the railroads can handle the volume.

          Durum wheat is a different animal and I will post here what I posted under another section.

          ...................................

          Tom,

          I think you have missed my point entirely.

          Yes, individual producers deal in small lots of grain. The spot prices in a completely open system can be indicative of a variety of situations which do not relate directly to the demand of the export market. Sometimes brokers get themselves into a "short" postion which results in strong spot prices. The degree to which that same broker is willing to "go long" also does not need to be representative of an export demand, only the brokers appetite for speculation.

          Since there is little opportunity for brokers to work the durum market in Canada you are not going to see those spot prices. I will not pass judgement on whether that is a good or a bad thing. Brokers certainly add liquidity to the market but at what cost?

          The Canadian Wheat Board has no ability to provide this "brokerage" function. Their job is simply to market the wheat offered to them, and to do as best they can to maximize returns to farmers. To that end they do not sell the entire durum crop.

          The CWB will sell roughly 3.5 million tonnes of durum this year which represents about 60% of world trade. Farmers produced much more than this and inventory levels will increase.

          Why do farmers grow so much durum? Probably because it pays better than spring wheat. Why does it pay more than spring wheat. Probably because the CWB only sells that amount of durum wheat that durum millers demand and does not sell durum wheat into non-durum markets as would be required if the plan was to sell the entire durum crop.

          So, you see the Canadian market does not operate at all like the American market. Perhaps that is a good thing considering that American farmers depend for their survival on Government subsidies that are many times greater than those which Canadian farmers receive.

          Now please go on and tell me that I have once again proved that you are right.

          Comment


            #6
            Vader;

            US/EU/FSU/Argentinaian/Brazilian/Northern/south African/Ausie farmers individually will sell 100% of the grain they would like to (or need to)into the human consumption market for durum/wheat.

            In other words... every one else in the free world today But "designated area" CWB Western CDN grain producers.

            Even CDN farmers outside of the "designated area" can sell everything...

            Only CWB "Designated area" wheat/durum producers are stuck with no planned market (at least a year in advance)for their grain that is in store that they offered for sale.

            Not acceptable.

            "A" series Contracts are the designated way CWB "designated area" wheat/durum growers have to indicate how much the CWB must market in the 2005-06 crop year.

            First contracted, first served.

            "B" and "C" series CWB contracts are not relevant here. They automatically must be behind "A" series contracted grain no matter what... for this system to have equity.

            The CWB may roll this "A" series grain into the next crop year if they need... whatever is required.

            DON"T TELL ME YOU WON"T TAKE MY "A" series GRAIN.

            This is why we switched from acreage based quotas to contracts... so the CWB WOULD KNOW how much grain it needed to market... well in advance ("A" series by Nov of the crop year)... with no excuses.

            Argentina has a small exportable wheat crop this year. CWB has less increased 05-06 volume than the Argentianian farmers lost... 6mmt, 1.5mmt rather than 7.5mmt.


            WHat is this garbage of extending the sign-up date 2 weeks; opening up the contract 50%... then not taking all the grain contacted?

            Only in Canada!

            I guess the CWB doesn't understand the words; integrety, ethical, fair, responsible, need I say more?

            Comment


              #7
              Vader;

              On Durum;

              The CWB IS the only Human COnsumption Broker in Canada's "designated area"... and they are only a broker as they own no processor facilities, no handling facilities.... nothing at all.

              That there is no competiton for my grain from another broker is... criminal in a country that claims to be a free and democratic society.

              If there were market choice... no question that the CWB would have accepted all the grain offered to it in the "a" series contract!


              How many years has the CWB "saved" Durum... into the next crop year; from 2002-03 the price has dropped from $280/t to where now it is projected at $200/t for 2005-06.

              This is "single desk" monopoly sales at work! CWB forces durum growers to hold back and sell into the next crop year for less. And because the liberals tell us to believe the CWB are experts... who should know... we follow like sheep to the slaughter.

              Costs are way up from 2002... on top.

              We priced ourselves out of the market... and created a large supply that has ended now with a 50% acceptance of 05-06 grain and no market for the rest of our Durum.

              THis is Liberal CWB Marketing at it's best! Belly on up to the trough... snort and wine a little... suck in some scam $$$'s... become fully dependant on Goodale's Liberal vision of helpless farmers with soft mushy brains!

              Comment


                #8
                As far as I am concerned if the board does not take 100% of what I offered to them I should be able to sell " MY WHEAT" any where I want to. That includes outside Canada's boarders.The board doesn't seem to reallize that we cannot financially hang onto this inventory. Just like a couple of years ago I sold #1 13.5 cwrs into the feed market for pig food. I wonder if the starving people in the world missed it.

                Comment


                  #9
                  Wrong, wrong wrong,

                  Durum does not get held back into the next crop year where it gets sold at a lower price.

                  Durum is held back each year as the availability of milling durum market dictates. All the durum could be sold in any given year and prices would drop to spring wheat values which would be 37.00 per tonne lower.

                  The following year might in fact be a lower price average but it could also be higher as has been the case in many years.

                  I would certainly appreciate an intelligent discussion without reference to criminal activity. This sounds much like the Federal conservative references to organized crime. Perhaps that is where you get your material.

                  Comment


                    #10
                    Adscam was organized by the liberal party, and it was criminal.

                    I think it was worded appropriately.

                    But lets not get sidetracked from the thread, it is very good arguing.

                    Comment


                      #11
                      I am sorry Profarmer. The reason YOUR WHEAT is worth what it is, is because the CWB CHOOSES not to sell it.

                      It is too bad that the price signal is exactly the opposite of the signal sent by the acceptance level.

                      Should we grow more and sell it for less or should we grow less and sell it for more?

                      You and Tom seem to think that we should grow more and sell it for less. That to me seems to be insanity.

                      No wonder we are all going broke.

                      Comment


                        #12
                        "The reason YOUR WHEAT is worth what it is, is because the CWB CHOOSES not to sell it."

                        Wheat that cannot be sold is not worth anything!

                        When the CWB withholds wheat; others fill the marketing hole and take market share from Canada.

                        Vader, what exactly is the CWB's marketing plan for 2005-06?

                        Comment


                          #13
                          Timing is everything Tom. Wheat that is not sold into this years glutted market may be worth much more next year. If you sell all of your grain into a depressed market you may have simply crystalized you losses.

                          Comment


                            #14
                            Vader;

                            Is this the CWB's marketing plan then...

                            On a whim... with no plan?

                            Comment


                              #15
                              Tom, I like it when you become insulting. It means you have run out of constructive arguments.

                              Comment

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