CWB Payment Announced

[Burbert]

Let the sniveling and whinning begin! Not enough, not enough, never enough, till the open market reins over all! Timing is no good either, just before Xmas, blatant political play, by the cunning crats at the CWB. During a directors election, can you imagine, how this ploy will playout in the overall scheme of tings to come. BAD CWB, BAD CWB..

[furrowtickler]

Burbot - who sets the initial prices?

[caseman]

maybe they should have raised the initials in late october.a lot of 4 and 5 durum got sold nonboard because $4.00 - $4.50 paid now is alot better than .59 cents plus more 17 months later.

we grew about 45000 bu of durum and wheat this yr,all graded feed and all will be sold non board.

[newguy]

Most of my #1 durum stored where I will not get at till spring now. Made sure the grains I needed to get at for cash flow was close to home. If intials would have been higher earlier may have been differant.

[vvalk]

burbert
thought you said it would be up up up. What happened? Did you phone to ask why they were down, or do you just take the PRO as gospel and ask no questions?
How can you justify a $7 decrease in the malt PRO when the world is runnign out of malt

[charliep]

[URL="http://www.cwb.ca/public/en/newsroom/releases/2010/news_release.jsp?news=112610.jsp"]cwb adjustment payment[/URL]

[charliep]

Should not the spreads in initial payments have changed.

1CWRS 13.5 protein recieved an adjustment payment of $68.40/tonne.

1CWRS12.5 - $60/tonne.

2CWRS 13.5 - $57.10/tonne

2CWRS 12.5 - $51.25/tonne

3CWRS less than 12.0 protein - $44.10/tonne

Canada feed - $50/tonne (no change feed wheat discount at least today on an fpc). For what it is worth, a farmer who delivered feed wheat against an fpc prior to the
announcement of the adjustment will have $18.40/tonne in their than someone who deliveries and applies the same feed wheat against an fpc starting Monday morning.
To add insult to injury, the feed wheat initial payment on its own in Alberta has increased from $25/tonne to $75/tonne - just over $2/bu with a further $2.50 to $3 still
to come (i.e. you are getting less than 50 % of your money on delivery.

[URL=" http://www.cwb.ca/public/en/farmers/payments/pdf/2010-11_tonnes.pdf"]cwb initial payments[/URL]

[cityguy]

Charlie - is the spreads betwee 1-13.5 and feed widens by $18.40, then won't the feed wheat discount on the FPC's narrow in by $18.40 to offset. Point being that if on the day prior to the initials change the FPC feed discount is $20.40, then on the day of the change the discount then goes to $2.00.

[charliep]

Don't know the answer/will be become apparent on Monday. My suspision is the
feed wheat discount will remain in place but could easily be proven wrong. Will
note that a 2CWRS 12.5 protein get close to an $18/tonne widening of spread -
$17.15/tonne to be exact.

I should note the current spreads are likely more reflective of current market
spreads. If the CWB used market spreads on the fixed price contract versus initial
payment ones, this adjustment would have been made a long time ago. These
spread calculations are made daily for buyers such as the domestic flour mills.

What needs to be highlighted starting with the CWB candidates is the foolishness
of the large changes around arbitrary dates - eg. an announcement of an
adjustment payment. Picking on 2CWRS 12.5 wheat, someone who delivered last
week on an fpc will have $17/tonne more in their pocket than their neighbor (or
maybe themselves) who delivers next week/uses a fpc. No market reason - just
luck of the draw.

[charliep]

Perhaps should be noted the federal approves the overall adjustment payment for CWB
base grades based a CWB recommendation and their internal analysis. The establishment
of spreads is a CWB operations function.

[TOM4CWB]

Charlie,

For the CWB to use initial grade spreads for paying FPC/BPC to growers; is as stupid as selling all our wheat cash through pool accounts (all PPO wheat is sold to CWB pools).

How on earth did we get so messed up?

[cityguy]

Charlie - is it Monday when all is revealed on the Feed wheat spread issue, or Thursday, then the new spreads actually go into affect?

[charliep]

Likely Thursday but again not sure.