CWB got a sale to Saudi Arabia

[rockpile]

Another good course in governance and understanding financial oversight for Board members is offered about twice a year at the Haskayne School of Business at the University of Calgary. This is quite intense and the candidates should already have some Board experience or previous training as identified by Jeff. Your instructors include CEO's and Chairman from major national and international companies as well as top business academics from around the world. A bit pricey, but well worth it.
Of course the CWB should pay for it, or would you rather restrict the terms of reference for candidates to include only MBA's, previous Board members or otherwise eliminate possible credible people?
Rockpile

[parsley]

Parsley did some translating on the Saudi Arabia sale on Parsley's Notebook. A bit long or I would have posted thme here. Also translated a few costs of farming in SA. Rather interesting looking at farmers in other countries.
Pars

[haveapulse]

Please advise if 253$ USD/MT CIF Jeddah is the price, that has to be a typo. It that is right this is not a sale it is a donation.

[cityguy]

let's say $253 Cnf is the value jeddah/Damman. Call average freight to make the math easy $43 and maybe $10 to elevator on the coast. $200 USD track or about $210 Cdn against a 2-12.5 PRO of what - $225? If the $253 is right, what do people think the CWB undercut other origins by ? $5.00 / $15.00 / $50?

[parsley]

I cut and pasted the translation.

[parsley]

Ah, I didn't bother pasting the translated one Charlie did.

[gustgd]

From WILD OATS newsletter

World Wheat Prices Under Pressure
Saudi Arabia bought 550,000 mt of Canadian origin wheat last week at $250 usd mt cnf which equates to about $3.75 to $4.00 per bushel in Central Saskatchewan for a quality in the range of No.2 and No.3 CWRS mid protein. World prices have come under pressure due to large supplies from all major exporters and lower import demand. The 2009/10 world wheat carryout is projected at 186 million mt, up from 166 million mt last year and 122 million mt in 2007/08. Major exporters are showing aggressive prices just to win tenders as there is major competition from Europe and the US. The function of the wheat market is to encourage demand through lower prices. We expect to see weaker CWB Pool Return Outlook in upcoming months. Strength in the Canadian dollar has also had a negative effect on domestic wheat prices and this will continue to add downward pressure.
Feed wheat values in western Canada have also declined and are now lower than the CWB Pool Return outlook for No.3 CWRS and No.4 CWRS. We are starting to see offers dry up from the Black Sea region which should be supportive to the world market but strength in the Canadian dollar is offsetting this small benefit. Liquidation in the hog complex and additional competition from DDGS will continue to limit any strength in domestic prices.

[parsley]

Nothing like a wheat sale to pave the way...............

translated:

"Baghdad / term
Began in Ottawa Canada talks of Iraq concerning the development of Canadian economic and trade relations and conduct of government contracts for the supply of Canadian wheat and other food items that fall within the ration distributed by the Ministry to more than thirty million Iraqi citizens.

The Iraqi side was headed by Dr. Abdul Falah Hassan, Sudanese Minister of Trade, while attended by the Canadian Minister of Trade and representatives of the Canadian Parliament and the Sudan in the talks said the Iraqi government's desire to increase trade and economic exchange and the holding of major contracts directly with the Canadian government and Canadian Wheat Board

In addition to directions for the development of investment through the issuance of the investment project, which it hopes to have the presence of Canadian companies in major projects in Iraq, adding that Iraq is seeking through this visit to a commercial contract with the Canadian government and Canadian Wheat Board for the purpose of supplying large quantities of wheat and it is the second largest supplier of wheat in the world and needs to quantities of up to four and a half million each year underscores the need to coordinate with friends in Canada and find formulas and contracting mechanisms and a clear addition to that, the Iraqi government wants to benefit from Canadian expertise in the development of the agricultural sector in Iraq and invest to develop this vital sector, which still suffers problems and complications due to wrong economic policies that lasted more than thirty years.

He pointed to the importance of the Sudanese Prime Minister's plan to develop the agricultural sector and the creation of clear mechanisms work and this requires the support of Canada in order to find a suitable ground to go beyond the problems of this sector which have a large variety of reasons, some unrelated to the low water level and the other is linked to soil salination and non-farming agricultural land in addition to the neglect he faces the work of the agricultural sector.

And also met with Sudanese Socialist Wheat Board also discussed ways of cooperation between Iraq and the Council and to overcome obstacles to work for a contracts and provisions for open tenders conducted by the General Company for Grain Trade. It was agreed to supply Iraq with quantities of Canadian wheat, according to the guidelines for procurement in government tenders.

The Minister of Commerce met with the Iraqi community and a number of Canadian investors and stressed the importance of investing in projects within areas of Iraq, where still are opportunities to work in Iraq according to the law which was approved by the government and parliament, which contains the paragraphs of serving the investor and provide them with guarantees that ensure his financial rights. The Minister listened to the phrase of the observations made by Iraqis in the diaspora as well as problems faced by companies and traders through the supply of food to Iraq, stressing the government's keenness Wazzarpaly and create a climate for merchants and companies to invest in Iraq and protect all their rights recognized by the financial controls"


http://translate.google.ca/translate?hl=en&langpair=ar|en&u=http://74.125.155.139/search%3Fq%3Dcache:TTRBnYXIQdEJ:www.almadapaper.co m/paper.php%253Fsource%253Dakbar%2526mlf%253Dinterpa ge%2526sid%253D44505%26hl%3Den%26ct%3Dclnk%26cd%3D 13&prev=/translate_s%3Fhl%3Den%26q%3DCanadian%2BWheat%2BBoa rd%26tq%3D%25D9%2585%25D8%25AC%25D9%2584%25D8%25B3 %2B%25D8%25A7%25D9%2584%25D9%2582%25D9%2585%25D8%2 5AD%2B%25D8%25A7%25D9%2584%25D9%2583%25D9%2586%25D 8%25AF%25D9%258A%26sl%3Den%26tl%3Dar%26start%3D10

[gustgd]

From Larry Webers daily BASF report

Australia missed out on a 550,000 tonnes tender from Saudi Arabia last week despite attempts by suppliers to promote the quality of grain grown in Western Australia to the emerging Middle East market. Saudi Arabia instead filled the order from Canada, saying it was the last purchase of foreign wheat this year. Traders said Australian wheat was offered at $270 to $280 per tonne based on 12.5 percent minimum protein. They said the pricing of the Canadian offering was not known but it was most likely discounted to the CWB’s published price. (REUTERS) Just to make it simple: Discount : a reduction made from the gross amount or value of something: as a (1) : a reduction made from a regular or list price. Premium: a reward or recompense for a particular act b : a sum over and above a regular price paid chiefly as an inducement or incentive. We should bow down that they made this sale in this tough wheat climate and we may if we knew what they sold it for! Western Canada - the only democratic area in the world where you don’t know what your personal property is bartered for. This is one of the few times, the price has not shown up on wire services.

[bucket]

Anyone notice the mineapolis wheat has moved up over 40cents in the last week.

The cwb just gave us another squeaker of deal alright. They, once again, forgot the vaseline.

I would rather go broke with grain in my bins than have these absolute friggin morons sell at harvest low prices. They sold below pro prices.

AND JEFF - you oughta start watching individual sales that can affect pool prices - its your friggin job. If a director can't stand up and hold the salesman responsible for these dismal sales just wtf are you doing there and who's interests are you taking care of? Because I don't care what school you went to this sale stinks and as a director you should be asking questions. Or maybe you like low prices.

This sale is no better than the ethanol grain at Belle Plaine. Maybe you board supporters should look at the quality of grain between HRS and ethanol wheat and its value.