Current asking prices for feed wheat and barley are indicated to be around Cdn $290 to $300/tonne FOB (loaded boat) or $280 in store. Assuming $60 ish/tonne costs to bring back to the prairies (rail freight, elevation, carry, storage, etc.), prairie feed grain prices that reflect this business should be around $220/tonne delivered elevator.
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Feed Wheat and Barley Asking Prices West Coast
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The Thunder Bay price would be feed wheat with milling characturistics - would be interesting to know if any of this quality of wheat is actually sold to the domestic mills.
I would also comment that the T Bay price is an asking value. Actual sale prices would be different. If you believe this price, then I have some lovely swamp land in Florida I would like to sell you.
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Indications from the trade is the CWB is actively putting business together. From a meeting this past week, only about 10 % of the CWB planned feed wheat exports have been shipped. With $6.50/bu corn and risk it will go higher, would expect a lot of feed grain buyers will be forward booking as much feed wheat as they can from here to July. The question from my side will be how western Canada puts the logistics side together. Aussie will also be doing feed wheat business over this same period.
Should note that feed wheat remains a part of the overall wheat pooling system and will be impacted by the fact 58 % of the 2010/11 pool has been priced.
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Suspect the new feed wheat business will come via Guaranteed Delivery Contracts. Would have the below book marked or communicating with your grain company sales representative.
[URL="http://www.cwb.ca/public/en/farmers/contracts/guaranteed/"]CWB GDC contracts[/URL]
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The gdc comes with no price. If they make a sale for 100000 tonnes and find the required wheat, they should pay based on that sale instead of pooling it. Spot price. Then a farmer can evaluate the bid to see if it is worth selling or sending to the feedlot/ ethanol plant.
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I agree but you and I are the only ones that will talk about a cash price against an actual sale.
Perhaps the frustration is the CWB producer payment option programs always seem to be $20 to $30/tonne below the price offered at port based on international markets. This occurs even when the CWB is not offering feed grains for sale. The domestic market competes with a CWB programs that are $20 to $30 than they should be.
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