February 2010/11 PRO Released Today

[charliep]

The old crop PRO has been released today.

Wheat, Durum and Feed Barley Rise in CWB February PRO
Winnipeg -- The CWB today released its February 2011 Pool Return Outlook (PRO) for the 2010-11 crop year. Wheat values are up between $5 and $13 per tonne from last month's PRO, depending on class, grade and protein level. Durum is up between $1 and $5. Malting barley is down $1 per tonne, while Pool B feed barley is up $3 per tonne.

[URL="http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2010_20110224.html?OpenDocument&CropYr=2010-11"]Feb PRO[/URL]

First new crop PRO (2011/12) will be released next Monday. Good conference and a chance to meet others in the industry. Will put in a plug for World in Winnipeg. Will see you there if you go.

<a href="http://www.cwb.ca/public/en/newsroom/events/grainworld/">Grain World</a>

[charliep]

will note the real numbers for feed grains are not the PRO but the prices you can be paid on delivery.

Feed wheat PRO $245/tonne. 200 % EPO - $238/tonne. Almost no volatility in the EPO values.

[URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/epo/epo-wheat-2010-feed-20110224.html"]fd wht EPO[/URL]

[charliep]

Feed barley ("B" pool) - $238/tonne port. Feed barley EPV - $231/tonne port.

[URL="http://www.cwb.ca/public/en/farmers/contracts/guaranteed/#feed"]fd bly epv[/URL]

There are still significant differences between the CWB values and the prices being paid in world markets.

[malleefarmer]

can you put a farm gate price on those for me? For someone who has 200 km frieght and all charges etc off.
For the feed wheat and feed barley and i will do a comparison but im aware i have far less frieght

[charliep]

For an western Canadian farmer that is anywhere from 1,000 kilometers to
2,500 kilometers from port, the CWB deductions are anywhere from $50 to
$60/tonne for wheat and $60 to $70/tonne for barley. To get to farm gate,
you would have to include about another $10/tonne trucking. The trucking
will vary with location. Some grain companies offer trucking incentives.

Working the numbers, a CWB farm gate price for feed wheat would be $185
ish ($5/bu) and $170 ish ($3.60/bu) for feed barley.

[Burbert]

TRUCKING $10.00/T. Reality check in
order, seeing this phoney, baloney number.
Get real Charlie P. Grain company
incentives, get real, nobody, I repeat
nobody, pays anything anymore, wink, wink,
wink. Ifn you won't pay, I won't pay ha,
ha, ha! Only incentive EVER paid now, is
by the CWB............

[charliep]

What is an appropriate farm to elevator trucking cost (commercial rate)?

[btjadenlepp]

$8/t, give or take $2/t.

look forward to catching you here next
week!

[charliep]

From a newsletter I get, current international feed barley prices $285 to US $300/tonne FOB exporter (Aussie, EU, CWB). CWB indications at the top end. Corn $300/tonne at the Gulf.

For Alberta, $300/tonne FOB west coast equates equates to about $215/tonne back at the local elevator. $15/tonne fobbing (loading vessel), $65/tonne for CWB deductions/costs, $5 for miscellaneous. My math tells me there is about $45/tonne difference (buck a bushel) between what is being western Canadian farmers and current international prices.

Maybe Burbert can explain the difference. I recognize that the current GDC is supported by a early payment value with a top up later on but there is a lot of money on the table in terms of domestic versus international prices. It is something real barley producers should hold the CWB accountable to.

[malleefarmer]

unfortunately freight is your real killer over there, from farm to terminal

[charliep]

Western Canada is a high cost shipper to world markets. In the case of
barley (even at current high prices), 1/3 of the international price is
consumed with transportation/logistics. Lower price periods and this
percentage goes up.

[furrowtickler]

Bring back the crow !!!!