Wht & Durum prices, Bottineau and Berthold

[boarderbloke]

cash bids for old crop with positive basis;


http://www.bertholdfarmers.com/index.cfm?show=11&mid=26&theLocation=1&cmid=4&layo ut=19


http://www.bottineaufarmers.com/

[ajl]

Makes you wonder what the American farmers
do with all the money. If we got those
prices we would have to pay tax. Maybe
when the wheat board is gone.

[furrowtickler]

lol, goes to show how we are getting pouched!!!!

[highwayman]

And when you look to such crops as peas and canola, our prices here are higher then the US. Could it be that those commodities have been allowed to flourish under the open market system as opposed to being suffocated by a single desk.

[wmoebis]

Does the States not have open market on peas and canola?

Why aren't thier producers up here selling into our markets?

Just trying to get a handle on how this open market works.

[gustgd]

Are those prices per hundred weight?
The $26.48 seems to good to be true.

[ajl]

I am fairly certain that US canola is
priced per hundredweight. When I was
hauling canola to canbra foods there was
American canola coming in at that time.
If you see those funny A train rigs
around, It is usually American grain.
Also the receiving sheet showed those
loads originating from Cenex/Harvest
states.

[charliep]

26.5 cents/lb convests to about US $13.50/bu or Cdn $12.75/bu. Seems strange to have a higher US dollar price but the new world.

[boarderbloke]

Many peas have been coming from the USA into southern processers. The price and exchange favors them now.

Canola, most always, is priced per hunderd weight.

[boarderbloke]

you just divide the cents per lb price in half to get the value in dollars.

26.5 cents/100 = 13.25/bus

[TOM4CWB]

The CWB has baffled so many for so long... we don't want to believe our handling system actually costs LESS than the northern US costs US growers.

Canola and peas bring higher returns because we have invested in the processing infrastructure that in turn increases competition and brings the price up over US prices the vast majority of the year.

Proof the CWB doesn't extract a premium... and that the 'single desk' theories are at best unreliable and not to be trusted.

Will western Canadian prices go up over night... when the 'single desk' is removed? UNLIKELY.

It took years to develop the infrastructure and customers for our canola and pulse marketing system... will take hard work and time to increase the wheat returns... flax is another good example. Arbitrage works both ways.

Hard for the CGC and CWB to believe... but the US grain handlers are actually more careful about quality and customer care. We CAN... and WILL do better in time!!!

Just as in CWB board feed wheat and barley... Non-board feed, milling and malt... will be higher than CWB prices at times...

Arbitage is never assured... unless you have a good low cost truck/transport system to haul it to the better market.

[wmoebis]

"but the US grain handlers are actually more careful about quality and customer care."

How so Tom?

[Braveheart]

Tom, "US grain handlers more careful", really? Dream on. Less careful? No. With food safety and quality assurance a huge issue worldwide everyone (except the Chinese maybe) has to be conscious of what they handle and ship. I don't think Canada's system has ever taken a back seat in quality control.

You also stated that the price of grain wouldn't rise overnight when the single desk is gone. I disagree. If I am a Canadian grain handler, I'm already talking to customers and railroads to put togther a package that would bring competitive prices right away. In fact the next holiday we have could well be called "Arbitrage Day", August 1, 2012.

[TOM4CWB]

wmoebis,

Why do you think Japan pays more for US wheat... THERE is a REASON. Quality specs.

Bravehart,

Expect milling wheat to be bought much like pulses. Why wouldn't it be?

[wmoebis]

Please elaborate for us! What is the quality diff and the price premium paid for this.