New CWB Feed Wheat Program

[bucket]

Doesn't this just work out to be the same as off-board feed wheat price and what are they doing for high quality grain????

[btjadenlepp]

bucket

1. i'm not going to say that they're
doing nothing on higher quality wheat,
but this is a completely different
program from 1CWRS and protein.

2. depends a lot where you are if these
new prices are higher or lower than the
domestic market.

www.farmlinksolutions.ca

[bucket]

But why not just leave the feed market to the grain companies,feedlot or ethanol market?

Do farmers have to pay the cwb for something that the infrastructure is in place for already?

Not to mention the fact it took the marketing geniuses at the cwb months to figure out it was a shitty crop.

[mcfarms]

Because this year unlike others currently the best prices for the feed wheat is offshore due to the problems in the Black Sea wheat. However this may be changing a bit now with Aus. having harvest issues as well, sorry about Aus misery loves company, Their prices can be found on the AWB site and give a decent indication of what feed is worth at port position there, remember they have a freight advantage to Asia so sales may switch to there.
That said this new program is a bit of a tricky one but is at least an option we didn't have a week ago. I was so close to taking a fixed price at 5.50 a few weeks back but didn't as the at delivery deductions with no movement scared the hell out of me as of yesterday I can get 5.37 out of this locked in with later delivery( unless I don't understand the program)|Looking at things this morning unless the deductions move and things are up real strong overnight and unless it changes during day trading we could be right back there. I can live with 5.50 feed as in the spring wasn't 3.50 1cwrs being talked about?
This new program may not be perfect tool for all but sometimes you don't have the right tool in the field and the crescent wrench has to do the job.

As far as which epo to take IMO at present it's like this the board would not have been presold very much on feed before this fall as they would have been working off normal grade patterns so the poo should be fairly level on projections to this point.

[mcfarms]

sorry freudian slip or spelling mistake there , pool

[bucket]

But you don't really need to pay the cwb for selling feed wheat, since the accreditted exporter program could do that.

I am thinking the cwb is buying wheat as feed, and then because of falling numbers getting good value for it which is not reflected in the price.

It would be interesting to see what grade patterns the board of directors have and see why these programs are implemented.

The cwb is just another middleman leeching off my farm.

[Steve_Winkler]

I signed up what tonnes I had on an earlier GDC, and priced it yesterday on a 200% EPO. With the freight and deductions, should net $5.33/bu, money in hand 10 days later . As convoluted as the program seems at least it gives you the chance to lock in a floor price. The particular wheat filling this contract is definitley feed, ugliest stuff I've ever grown. Sure the price may rise but it beats the crap out current non-board pricing in our area anyway. Still have more to price so I think this was a good start point.

[mcfarms]

Steve

Add your trucking incentive because it's going through the board, being that you are where you are you should be getting what 6 ish? a tonne.

[TOM4CWB]

mcfarms,

As Charlie has pointed out... at Vancouver port position... feed wheat is being bought at $260-70/t... even Japan is buying now.

So where is the last $20/t going? To the contingency fund? to the pool?

Why can't we just be given transparent market opportunities if the CWB is supposed to return ALL the revenue to growers? If cost of CWB Admin is only $3 or 4/t... we SHOULD be given more for our feed wheat!

[mcfarms]

No argument there, but under the present circumstances this is better than 2 weeks ago when we had nothing, baby steps are sometimes better than SFA.