Feed Wheat

[oldjim]

Looks like the country will be full of feed wheat after this lousy year. Current off-board price seems to be a bit north of $4., CWB initial is something like 43 cents (wha?). Any projections on where this off-board price is going to go by New Year's and after?

[mbratrud]

If the CWB does their Job Significantly Higher!

[Hopperbin]

That 43 cents if funny. You must be near my frieght rate cause I get 42 cents. LOL. Like my 5 year old daughter says WOW guess you gotta be there.

[charliep]

oldjim

Just to highlight, US corn will trade close to $6/bu this winter.
World barley supplies are extremely (malt and feed). Ukraine and
Russian (suppliers of feed wheat) are not selling.

Do the math on fpc with feed wheat applied on the contract.
You have to be near a designated elevator/company for a
guaranteed delivery contract (would tell them to stick the "A"
series feed wheat contract where the sun don't shine).

Ask your CWB director why feed wheat is handled differently than
feed barley. You can lock in a feed barley price of $222/tonne
port or depending on location prairie price of $160 to
$170/tonne. Am somewhat confused but had someone tell me
you have to take the early payment value ($5/tonne I think
premium).

Not all is heavan in feed barley by the way. Had a front line
grain company guy tell him there are plenty of ticked Alberta
farmers based on the CWB permutations and combinations of
prices, programs and delivery factors for the early offered feed
barley grain pricing contract and now guaranteed delivery
contact with an EPV. What is weird is the lowest farm value CWB
feed barley contract prices occurred when international feed
barley were highest.

[TOM4CWB]

Charlie,

Tried to do a GDC FPC feed wheat contract on the 15th of Oct. IT WAS FULL. We actually tried but there was only .07t left to sign-up on the CWB system. We phoned the CWB... they blamed Viterra that it was full and ask for more. We called Viterra... they laughed and called the CWB comment amusing!

Then after this... the CWB extended the sign up till Oct 22? WHAT was THAT?

I may be brain dead... but what was the use in extending a full GDC feed wheat sign-up period a week?

[charliep]

Frustration from the fact that the CWB operates a supply push
system and not a demand pull. Contract with the CWB and then
they work to sell. Demand pull would be a system of finding
markets/prices and then providing farmers the opportunity to
participate based on market signals (making it worth the farmers
while to participate).

Perhaps the comments from the CWB reflect the way things happen.
The grain companies create sales in export markets, then try to go
to the CWB for a price/permission to complete the transaction and
finally it is the grain companies that package the business for
farmers. CWB role is pretty miniscule in the overall completion of
the sale - simply a guard over prices and ensuring fits into the
pooling system/payment calculation.