Durum prices!

[fjlip]

Unrelenting rainfall may have slashed U.S. planting of durum wheat to the lowest level in more than 50 years, fueling a surge in the price of pasta and noodles as mills scramble for supply of the grain. Farmers who normally are finished planting by now had completed just 44 percent as of June 19 in North Dakota, which produces more than two-thirds of U.S. durum, government data show.. Planting may drop 47 percent this year to 1.365 million acres, the lowest since 1959, Olson said. In the past month, parts of North Dakota and Montana, the second-biggest grower, had triple the normal rainfall, National Weather Service data show. North Dakota durum prices are up 52 percent in the past month, and U.S. pasta in May was the most expensive on record. Grain elevators in North Dakota are paying farmers about $14.40 a bushel for durum on average, up from $9.50 a month ago, North Dakota State’s Olson said. The price may top the record of $23 reached in February 2008 if additional weather problems hurt crops this growing season, he said.


New crop durum PRO for 1CWAD 13.0 at $10.23 in Saskatchewan. The fixed price contract (FPC) was at $10.18 yesterday. New crop durum for September delivery in North Dakota was CAD$14.95 - a difference of $4.77. It is only $143.10 an acre difference on a 30 bushel durum crop.

[begood]

And thats how the CWB has cost individual farms a million dollars of profit in one year. And it is not a one day spike that no one could capture. So here we go again. Another grand opportunity is being lost, with no viable options available.
There is now another one year period; which has already just started; that the poorest farm marketer could outperform the CWB by dollars a bushel.

[FarmRanger]

My question is why?

Padding the pools? No ability or desire to
actually try to achieve a competetive price?
Gross incompetence? Revenge? Are they trying
to explicitly demonstrate the kinds of losses
we've been forced to incur the last 70 years?

Whatever the reason, reality flies in the face of
the rhetoric. At least this costly nightmare will be
over next year.

[FarmRanger]

My question is why?

Padding the pools? No ability or desire to
actually try to achieve a competetive price?
Gross incompetence? Revenge? Are they trying
to explicitly demonstrate the kinds of losses
we've been forced to incur the last 70 years?

Whatever the reason, reality flies in the face of
the rhetoric. At least this costly nightmare will be
over next year.

[LWeber]

Here you go chuckChuck:

http://www.riderfans.com/forum/archive/index.php/t-56168.html


Canadian Wheat Board Director explains;


I hear all the time here on angryville the time people like Saskfarmer bitching about the CWB because he can't get $17.00 for his durum and he blames this on the CWB.

In the case of a few rich farmers who can sit on all of their grain while the raging masses sell out early perhaps Saskfarmer has a legitimate argument. Perhaps we did cost him $5.00 per bushel on his durum. Perhaps it ran 50 bushels per acre and perhaps he had a thousand acres. And perhaps he could have earned an additional quarter of a million dollars.

[...]

So yes the downside is that we kept Saskfarmer from buying another section of land where he might next year make enough extra money to buy out another suffering neighbor who had to sell a section to Saskfarmer.

The upside is that the Ag industry in Canada made an extra almost quarter of a BILLION DOLLARS.

And that is just on Durum.

Wait till you see my analysis on Spring Wheat and Malt Barley.

Rod Flaman
CWB Director - District 8
306-771-2823
rodflaman@imagewireless.ca

I think you confused Algeria with Canada.

... the Ag Industry in Algeria made an extra almost quarter of a BILLION DOLLARS.

[begood]

That Flaman rant is the classic response of all time. It comes straight from the board of directors; straight from a "farmer"; and with similar logic I can't see why registered seed sales; organic grain shipments and the bedtime story of the mother hen's hard work all haven't been pooled by the CWB.
Waiting another year is way too long. It's liable not to happen in time; if at all.

[bucket]

Thanks weber.

That vader post is a classic.

Complete Incompetence. Asking prices to start the new crop year at 18.00 per bushel and the PRO is at 12.00. Thats a pretty big spread.

How does one average the pool down to 12 bucks in a rising market??????

They should be careful, there may be no durum contracted, then how do they fill sales????

[silverback]

Interesting comment bucket.

What kind of future commitments or hedging have they already done?

How many years into the future?

[FarmRanger]

<i>"How does one average the pool down to 12
bucks in a rising market??????" </i>

Perhaps a complete financial audit would reveal
just that.

[begood]

Please don't waste time and energy concentrating on an audit or what happened in the past. Lets get this over and try something that might work. And do it now. We've been hurt too long and to hard.

[SASKFARMER3]

Well the two year old Durum I have would net me close to 450,000 dollars (Mr Flaman that would be real nice money) Now land has gone up in price so would not buy any now waiting for better timing this time round. But the CWB would get me Maybe 200,000.00 if I am lucky, So where does that 1/4 Million dollars go, that's the question, Someone answer please. I must be doing the math wrong or something because even my 84 year old father can figure it out with grade 6 education. Its rather simple pick up phone that's the thing on the wall in CWB supporters houses with probably still a round dial that you turn to the number needed. In our case I know what family is getting south of here and its not a spot market, its reality, Poor quality in Canada, Wink wink (Canadian grain commission BS)plus look at the area with poor crops its the heart of durum country. DAH doesn't take a genius to figure it out.

[cottonpicken]

http://www.bloomberg.com/news/2011-06-24/pasta-price-may-surge-as-swamped-north-dakota-cuts-durum-supply.html

So what about a young farmer who had the sense to hold on and now has no crop for 2011?

[SASKFARMER3]

Under a system with out the CWB they would have Cash (Cash) to help them through the year. CASH CASH CASH. Oh that's such a bad word.
That guy in picture with the tinfoil sticking out of his had from Manitoba is just driving me nuts.
This idea that the CWB gets me a premium is plain Bull Shit. Sorry to offend any one but its true. It is to subsidise Winnipeg with a bunch of useless employees.

[fjlip]

Your talking Eskimo again...bad boy!

[jhurkot]

That extra quarter million dollars goes into the
severance package for CWB employees and probably
boat maintenance as well.