looking for durum burning stove furnace

[Raven]

Gregpet

Some people believe the Act requires the CWB to buy all wheat and barley offered to it, however, if you consider Part II of the Act, it gives the CWB authority to control producer deliveries of grain to elevators (which includes mills, etc.) Grain is defined in the Act as wheat, oats, barley, rye, flax, canola and ****seed and at one time these grains were also subject to quotas. This is the "CWB orderly marketing" stated objective of the CWB Act.

Now the CWB uses contracts to replace the former quotas for wheat and barley and allows open delivery of the other grains.

So it can be said that without delivery oportunities for wheat under Part II of the Act, the wheat is therefore not officially offered to the Board in Part III of the Act.

[SASKFARMER3]

If its not offered to the board then is that the legal issue for us to cross the boarder and sell our own product?

[ProFarmer]

If the board does not want the rest of your production you should be able to sell it to any one you want.They should not dictate keeping you in poverty.

[SASKFARMER3]

but is this our legal out. or push to end the CWB. HM

[Raven]

The problem of border running is that it becomes a Customs enforcement issue. The key is export licences. The CWB Act requires all exporters to have (and present to Customs)an export licence. Once a farmer gets the licence they are out of the monopoly.

The Act gives licencing authority to the Government and not the CWB, therefore the Conservative Government can order the CWB to issue licences to producers without any change in the Act.

The pressure should be put on Ritz et al.

[mbratrud]

At risk of sounding like a Board hugger, we produced enough Durum this year to supply the whole World Market for Durum for the year.. On top of carryout from last year we are swimming in the stuff. So what would you do different if you were the Board?

I think this is a good signal from them, I don't want to sell all my good quality Durum for $4 a bushel! Grow less next year and wait for the price to come up just like any other small market commodity. My beef is they didnt sell more in the past 30 months, but it is what it is...

[wmoebis]

I can agree with you mb. I would rather have my bins 1/2 full of $8.00 durum than empty of $4.00 durum.

Much like fertilizer last year when price got too high market dried up, stocks rose and price dropped. We could sell at lower price or cut production and hold stocks for next price rally.

Now, if it is a true CWB marketing problem, then I think the pressure should be on accredited exporters to find these markets and prices. This would prove that the system would work without the CWB.

I don't think there would be a market for 2seconds if 200,000 lined up all the trucks we could fined and headed south. We need overseas high paying markets and someone to sell into them.

[chaffmeister]

Mbratrud:

What would I do different if I was the CWB?

First, sell grain.

But the CWB needs to understand things like spreads. Inverses in particular.

Let’s look back chronologically:

07-08 total payment for #1 durum 13 was $511.52
When the 08-09 PRO was first set (in Feb 08) it was $466 (The 07-08 PRO was $526 at the time)
When the 09-10 PRO was first set (Feb 09) it was $303 (The 08-09 PRO was $360 at the time)
The current PRO is $216.

When old crop (07-08) is $526 and new crop (08-09) is $466, that’s a $60 inverse.
When old crop (08-09) is $360 and new crop (09-10) is $303, that's a $57 inverse.

Regardless that these are forecasts and not actual market prices, they represent the CWB’s view of the markets. Since 07-08, the market has dropped $295/tonne. At just about any time during this period, old crop was a better price than new crop.

Canadian carryout:
July 31, 2008 was 819 (51% of the world carryout)
July 31 2009 was 1,897 (53% of the world)
July 31 2010 is forecast at 2,100 (66% of the world)

Stocks to use ratios (Canada vs the world)
07-08………17% vs 4%
08-09………38% vs 8%
09-10………37% vs 7%

These are ugly numbers. Canada holds back on sales because as Maureen Fitzhenry would say, they figure they’ve “got them over a barrel”. This allows the rest of the world to take advantage of the inverse and clean out its cupboards. We’re left holding a barrel-full of durum.

There are two important trading maxims that just about any trader with half a brain and a little experience knows:

1…..Inverses are made to be sold.
2…..Never, ever, ever carry grain through an inverse.

The CWB doesn’t seem to know this.

CWB marketing appears to be more political that commercial. They want to protect the pool so they back off from making more sales that might reduce the PRO (remember why they closed the malt pool last Jan?). In the last couple of years the CWB should have been doing everything it could to avoid carrying inventory (yours) through the inverse.

[silverback]

If the board, with 500 employees, can't make sales any better than a computer selling an equal amount every day of the year, then it has no value.

[Fransisco]

First off it was the boards price signals that led to the overproduction in the first place.

Secondly farmers sold a record amount of canola at record high prices while the Board decided to hold back crop. Farmers making decisions by themselves in the open market knew what to do, the board didn't and it still doesn't. They will get their pay-cheques and bonus's like nothing ever happened while durum farmers get to build bins and take out loans to cover growing costs over multiple years.