CWB and cash flow

[vvalk]

I just got my cheque for 6 super B's of wheat and it was for $33000. Not sure when I will be able to deliver the rest or if I can even deliver it at all. To get the same amount of cash for nexera canola I have to deliver 1 1/2 loads. So that is 4 to 1. Yet CWB supporters will argue till they are red in the face about how good this system is. Am I missing something here?

[bucket]

They will tell you how 2 years ago it was worth more and that you are lucky to have the cwb guaranteeing that whopper of an initial payment.

[seabass]

Welcome to Hell. When I was quite a bit younger starting out in this game I would ask my Dad how does one survive growing Wheat? Simply put don't grow it until your older like me cause you'll never make your payments on the pennies the CWB gives you. Now that I'm getting to the age he was at when we had this discussion I still think growing wheat is for somebody older with income tax problems. This crap won't end until they're gone for good.

[Hopperbin]

I am wondering where Walk is selling Canola at 11.90 per bushel even Nex. is not any where near that. Or is he loading that super b a little heavy?

[Hopperbin]

Just be lucky you have HRSW and not CWSWS wheat and get shit on every morning from the CWB before breakfast.

[ColevilleH2S]

Or Select winter wheat. Why does the board even pretend they sell this stuff. My bins are still full of high protein HRWW and there is an end user demand for it. So guess who is standing in the way of me selling to them.

This tendering process is a joke.

[ColevilleH2S]

Or they'll tell you there are plenty other crops to grow non board, and you choose to grow board crops.

[vvalk]

Hopper
I am legal to haul 45.5 tonne. All my canola is delivered to Canbra in Lethbridge. My dockage is anywhere between 1.5% and 2%. Nexera premiums are anywhere from $43 over march to $66 over July. I have quite a bit priced near $500 and a fair chunk well over $500 so actually some of my loads are paying over $23000 a load. Instead of trying to be smart about it, why not take the principal of it. ( I would have been close with the numbers regardless).
You also just made my point, as well, that you can price canola ( basis and futures) at anytime for cashflow and that not all prices farmers get are equal. Some years you do well and others not. Its the way it should be.

[Fransisco]

Now imagine what it's like when even though you grew other crops, they didn't quite fill the bins like you'd hoped and pretty much all you've got to work with is wheat, that you can't turn into cash. It sure makes life interesting.

I owe, I owe, it's off to the bank I go...

[Fransisco]

Yup, it's a real mystery where farmers got the idea to grow all that durum. I mean it's not like they were getting any kind of price signals from the CWB, right?

[ado089]

Well why do you keep growing more Durum? Sounds pretty simple to me, if you produce 7.4mmt, never mind all the other producers alot closer to the consumer, but only have demmand fo 7mmt you're going to have two things happen, you're not going to sell it all and when you do you'e going to get a shitty price. That's an econ 101 issue not a CWB issue. Durum only get's used for a certain amount of products so the demmand is pretty fixed. I'll have an extra couple of scoups of macoroni tonight to try and help you out though.

[charliep]

Perhaps durum is a good crop that has a fit in crop rotations on brown soil zones. It has also paid well over time. As an analyst who in a previous life gave doom and gloom durum forecast in the spring prior to seeding and who faced the same audience the next year to explain why I was wrong and followed with another doom/gloom forecast for the new crop, things aren't always that simple.

A couple of notes is that durum should not necessarily be 100 % about contolling supply but rather building customer base on the consumption side. Can anyone name a new market/customer for durum developed in the last 10 years?

Also note the issue should also be about having a process that allows the durum market to clear supplies at the end of a crop year. Durum farm storage between crop years should be a farmer decision - not a CWB one. A process like was used with malt barley would accomplish this. Early shutdown of the durum pool to protect results plus a cash pricing alternative at the end of the crop year. I guess we could also be really innovative and have 365 day a year cash pricing but that would be getting carried away.

[Zaphod]

ado, you're right that there isn't much growth in world durum consumption. But Canada has only 50% of the world trade. There's still room to grow that share larger. Look at peas and lentils as an example. Don't give me the crap that we can't do any more. That's the same lame excuse why we export the same amount of malt barley year after year after year. Somebody needs to light a fire under those CWB "sales" people.

[ado089]

Like droping the price??? Market share does not come cheap and if you have too much you're doing something wrong or you have a target on your back.

Profit= Price X Quantity

[SASKFARMER3]

Again if farmers had control and it was Cash talking you could sell Durum or Canola or HRS or Barley to any one. Then the other guys have to come to the plate or not buy product. But our system they set the low ball price. Right now just a little above feed Barley or Oats. The rest of crop prices are dropped in accordance and who says the CWB doesn't control the market. Yea they control it Down Ward.
US price paid to us farmers.
HRS protein = $5.83 Canadian and Yesterday the CWB said Farmers in Sask don't expect more than, Wait here it is $5.06 Canadian and Durum HA HA HA. US price $4.32 vs $4.32 so basically their getting us the exact same as the US farmers Lowest price of the year. Yea their great just GRRRRREight.