Feed Wheat Australia

[gregpet]

agstar you said:

"So you believe the CWB should undercut the Aussies to make a sale? Interesting."

The CWB always spews the propaganda that an open market would drive the price down. Why is the CWB not using its 'influence' *sarcasm intended* to bid the price up?

[charliep]

mcfarms

Same question was asked at the CWB meeting last Friday at crop production days.

The highlight of the meeting was the multiple grades, proteins and other quality factors/intrinsic value to wheat. A challenge as we move ahead this year and try to improve price levels/discovery. No one disagrees. No one seems to know how to approach the issue however.

One of the comments at this meeting was a US company has ownership/can move wheat with a attribute like falling number through the whole logistic system elevator to terminal at port. They can manage quality because they have control - thus they can offer premiums based on falling number. They can also be held accountable to it.

The Canadian system is one of blending almost at every stage. No one can be held accountable for end results (CWB, CGC, grain company, railway, etc.). Don't know if true but a point made.

[malleefarmer]

I think alot of the above comments are true.
When you have a mountain of feed wheat which you have never had before you have to start somewere and sell in a rising market and if each sale is higher than the prevoius, you build a half decent price. Plus talk of drought in china and other parts maybe they are buying before price heads north in a hurry.
Also it may not neccessarily be under cutting it could be a case of china putting there cards on the table saying this is our buy price for this week take it or leave it, as there is so much feed wheat in the eu,canada and australia they will test the market with the deals until they get a taker?? Anyone believe that theory, but guess you could still argue australia may be a weak seller?

[BTOfarmall]

Whoo da Heck is dis Darth Vader Guy???

Sounds like he always wants to take da Easy way out. Kin't handle Life.......


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