I deserve an explanation.

[Hopperbin]

Chicago wheat is now higher than Miniapolis wheat. Why is CWSWS wheat net to producer 3 bucks below the futures price? Corn took a 4 percent jump today.
Things are on fire and the CWB is looking far behind the game right now.

[bucket]

Once again as in a previous thread can you say the following real sloooow:

A sale of wheat to saudi arabia at harvest low prices.

Think about it for a long time and then think some more. The cwb blew out #1 hrsw at fire sale prices and can't recover from their incompetence.

[Hopperbin]

That is CWRS wheat. Has nothing to do with soft wheats. I don't believe the CWB has any CWSWS wheat marketed yet as returns have been below feed grain values. There should be some demand with Chicago wheat so strong. Corn strong. With no advance sales and possibly export demand showing up these Soft wheat markets should be on fire.

[bucket]

Right but if they ****ed up cwrs there is a pretty good chance they did the same for everything else. Would you like to discuss durum as an example?

[Hopperbin]

I believe the CWB is going to need to get out of their cave and start giving farmers bids on this wheat. The last big grain rally also saw Chicago wheat neck and neck with MGE wheat. I am feeling really bullish now.

[Hopperbin]

Maybe the CWB could do farmers a favor this year and step out of the way this time when the rally happens. Now I am way too optimistic.

[bucket]

The cwb may have the same thoughts - why else would they have such a positive basis so early? But they still have dug themselves a hole on wheat they may not be able to recover from with that one sale to the saudis.

Why do I keep nagging the saudi sale you may ask?

Well it was done by accreditted exporters. They could have left the grain companies come bidding for the best quality wheat in the world instead of guaranteeing the grain companies a healthy margin on the sale. The cwb and the graincos are in bed with each other on these sorts of sales and the farmer loses big time.

[cityguy]

Don't confuse Chicago wheat futures with having anything to do with world cash wheat values. It's essentially a play pen for "commodity" basket money. US continues to stand on the sidelines in world trade. Consider Egypt tender this week. They bought 300,000 tonnes of wheat, 240,000 out of Russia and a cargo out of France. US wheat was about $40/mt higher than what traded. Chicago wheat is broken with regards to reflecting fundamental reality. Why do you think there is so much effort to get the variable storage rate charges put into place, and put in quickly.

[parsley]

Go to www.sedar.com Click on site map in the middle of the page. Go to companies and click on Viterra Inc and search for the most recent financial pdf statement and put CWB search into the box at the top of the pdf

CWB is a good good goood goooood cash cow for Viterra. Page 10

You can't paste out of sedar.Pars

[cityguy]

also - on soft wheat the US wheat associates web page had prices from last week for soft wheat at $195 FOB portland. Today's PRO had the <9.9 soft wheat at $195 Cdn instore. Call it $185 US plus $10 to elevate. So the PRO is more or less in line with the US values (which are a high price island). There is virtually no discount for the higher protein soft in the US becuase there isn't any higher protein around. Means that the PRO's are undervaluing the ordinary soft wheats relative to the "market" on the presumption that we don't have any higher protein soft wheat.

[Hopperbin]

Thanks parsley got a little lost on the site but did find Viterra is paying 8.5 percent fixed interest on 600 million. 4,5 and 9 year due dates. Interesting.

[Hopperbin]

City guy do you mean there are speculators in the market pushing up the futures price? Thumbs up.

[charliep]

What what is worth, special select soft white wheat (9.9 protein or less), went up $10/tonne in yesterdays PRO versus $1/tonne in the standard class.

[URL="http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2009_20091126.html?OpenDocument&CropYr=2009-10"]November PRO[/URL]

[charliep]

I see already posted. sorry about that.