looking for durum burning stove furnace

[mbratrud]

They definatly screwed up by not sellimg more... I guess the answer we will never know is had they got us to 100% sold on 08 and 09 how much preasure would that have put on prices. Maybe by dumping another 800000 MT prices would have been pushed 25% LOWER in which case I would rather have in the bin...

I guess my point is holding back this Durum is maybe on of the better things they have done. A glimmer of hope that they are actually taking their jobs seriously... Now we just need to improove the market signals they send to producers I hate Pool Return Outlooks....

Once again I will put in my plug for Single desk selling but get rid of the Pool and put a price on the Board every day!

[dmlfarmer]

Chaff: If traders know to sell and inverse, do not buyers also know to hold off buying an inverse? Is it not impossible to sell if no one is buying, and as a result prices fall to the point where demand returns?

[Zaphod]

The sooner the CWB sells this stuff, the sooner the market can recover. When they hold onto it forever, it just extends the lows in the market. The US is busy selling durum and their price is still way better than ours. If the CWB would realize how powerless they are, the better off we would be.

[chaffmeister]

Mbratrud:

CWB actions (holding back sales and issuing PROs as they did) did two things:

1…..allowed others to satisfy the demand
2…..muted the price signals so Canadian farmers overproduced

What it doesn’t do is prop up the market price.

The 08-09 PRO started at $466. This probably should have been lower but the CWB probably kept it up to avoid criticism. A year later the 08-09 PRO was $360 – over $100 lower.

Going from 07 to 08, Canadian production increased 49%
In the same time, the rest of the world increased only 6%

Interesting that different guys have different views on how they would approach the market. Something the single desk can’t accommodate.

Dmlfarmer – interesting question. Sure buyers see the inverse too. But they need to buy – you gotta keep eating. So they buy had-to-mouth – but they’re still buying. And others increased their market share while we decreased ours. Others cleaned out their cupboards while we stored more.

[mbratrud]

Chaff I Agree, as I said in my last comment there needs to be a way to improove market signals... I don't think that can happen in a pooling system.

[chaffmeister]

One of the worst inventions of the CWB EVER is the PRO.

- distorts market signals and therefore distorts markets
- the CWB manipulates the PRO to enhance its image more than to provide market signals.

[charliep]

Not to defend the CWB but the early days/prior to the producer pricing
options, the PRO had a purpose. Prior to 1992, the CWB had no method
to provide any signal of any kind the farmer (or perhaps any reason to).
The PRO, with all its flaws, did that to some extent.

In the new world, the only market signal the CWB should be providing is
a daily payment/price information. What the CWB will put in a farmers
pocket for grain delivered in the next 3 months. The price has to be
somehow related to a cash market or a shorter pooling period (no more
than 6 months) so it is fully reflective of reality.