CW Feed Barley Pool A

[malleefarmer]

Just reading in the western producer your feed barley pool $244 port.

I presume thats vancouver is it?
Freight is how much to port?

I locked in $285 port here and there $25 to come off that to get farm gate price, but in saying that your closer to markets so your price should indeed be higher shouldnt it?

[charliep]

Actually the PRO is $224 per tonne basis port (Vancouver and Prince Rupert) instore.

The CWB deductions vary from about $60/tonne in Alberta to $75/tonne Manitoba.

Forecast payment range from $150 to $165/tonne western Canadian elevator.

Initial payment is $83 per tonne or $23 in Alberta and $8 in Manitoba.

Very few farmers will sell sell way. Will use a CWB/grain company GDC/feed barley cash plus.

Your Australian feed barley prices are an accurate reflection of world prices. My math says AUD $285 is colse to Cdn $270.

See the most recent CWB barley PRO.

[URL="http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2010_20100910.html?OpenDocument&CropYr=2010-11"]feed barley PRO[/URL]

[TOM4CWB]

Mallee;

Here is the PRO info... with freight info.

http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2010_20100910.html?OpenDocument&CropYr=2010-11

How the CWB determines price on feed barley has much more to do with pool/cash price extra deductions than market transparency.

It would appear that malt prices are the limiting issue... the CWB does not appear to allow feed barley price to be significantly higher.

This seems like it is CWBs job to protect the domestic feed and malt barley consumers from paying competitive international barley prices.

For a west coast cdn port price... if Panamex freight is CA$40-45/t to get to Japan/Pacific Rim/Egypt... and your cost is $25-35/t...?

http://www.uswheat.org/reports/prices/doc/F6F27BC9CEE4710D8525779A007715AF?OpenDocument#

There seems to be a huge distortion in our CWBfeed barley pricing system.

Your Port price of CA$270/t to mid eastern gulf nations shouldn't be that different than CDN East coast Port shipments. Politics is determing price... just like in Russia... is what it looks like!!!

[charliep]

A couple of quotes from a newsletter I get (2 weeks old so a little dated).

Begin quote.

CWB has bought abt
230,000 tons for export Sept-Dec and they continue hold supply tenders as the sales
opportunities present themselves.
CWB sales price quote is 253.00 usmt FOB Vessel Prince Rupert for
LHOct/FHSept earliest.

EEC values 230-245 FOB depending origin/position up from 173-183 month ago
but down from its highs of 295 mid aug. They will be looking at Brussels to offer
its intervention stocks of 4.6 mmt.

Black Sea currently unquoted whereas 160-170 month ago.

Australia nominally 260 FOB up from 190 FOB month ago but down from its high 295.

Saudi levels at 290-300 CIF up from 200-205 month ago but down from its highs
320-330.

End quote.

Prices in USD $. Last chat I had with the trade indicated the CWB feed barley export program has grown to about 300,000 tonnes with current tradeable prices in the USD $260 ish range FOB.

[charliep]

I note your price of AUD $285. Is this instore (delivered terminal at port) or FOB (loaded vessel). The reason I ask is to determine port costs. Expense in Canada at about $15/tonne going from in store port terminal to loaded vessel. The grain companies will sometimes discount this but these have been the posted rates.

[charliep]

Malleefarmer

You didn't ask but here is a link to Canadian tariffs at local and terminal elevator position. Would be interesting to compare to Australia.

[URL="http://www.grainscanada.gc.ca/statistics-statistiques/tariff-tarif/tt/terminal10-08-01.pdf"]western Canada grain tariffs[/URL]

CWB business is done mostly full tariff although grain companies will cut somewhat to package business somewhat (read accept lower tarriffs) on tenders is it fits their logistic and business needs.

[charliep]

[URL="http://www.grainscanada.gc.ca/statistics-statistiques/tariff-tarif/letm-mtsa-eng.htm"]tariffs[/URL]

[malleefarmer]

$285 delivered terminal.
The price i read of western producer was a tad incorrect then.

another 17mm of rain here overnight and more forecast for next few days.

Bar frost incidents or locusts were in for a good year

[charliep]

Didn't answer your question very well. Rail freight starts at about $30/tonne Alberta (works its way higher as you move east). I note you are quoting farm gate and trucking costs to inland terminal are a further $10 to $15/tonne. Elevation, cleaning and weighing/inspection add another $25/tonne. Haven't included interest or storage.

Your AUD $25/tonne to port will have western Canadian farmers jealous.

[malleefarmer]

Some places in australia have $50 to 60 freight to port