export records without single desk

[malleefarmer]

re grading no its all the same all elevators grade the same.
protien moisture and sceenings and bushel wieght.

not all elevators take all grades but im lucky my local takes all the grades of wheat i grow.

pools pay increments for protien mostly some pool operators pay for lower moisture and screenings.
wereas cash is cash so sometimes once your grain is delivered you have to work out were to sell it,ie high protien low moisture low screenings wheat can be worth more in a pool than flat cash when you add up payments for the foremntioned quality parameters,but sometimes a load of wheat may make top quality by the barest of margin .1% for protien ie 12.5% then that may pay to sell for cash but if it was 13.8% protien may pay to pool it.

[charliep]

malleefarmer

Just checking on something. Australian farmers have less on farm
storage so more deliveries off the combine delivery to terminal. I
suspect limited ability to blend borderline grades. Here in Canada,
lots of on farm storage and grade variability. Everyone blends or tries
to play the game with varying levels of success.

You also have the ability to maintain ownership in a grain companies
facilities via storage tickets, warehouse reciepts, or some other tool.
You can sell your grain to other buyers other than the owner of the
terminal. Have I got it right?

Wheat ownership in the primary elevator and access to delivery
opportunity will be one of the discussions as things move forward to
an open market.

[malleefarmer]

also basis at the elvator for pools works of port price so further you away the less the price and cash is usually the same unless there is a end user in cash close to the elevotor he maybid the price up.

[malleefarmer]

correct charlie ownership of grain is te farmers until the load ticket is transferred to a buyer.

On farm storage is mostly for domestic grain only all grain to be exported has to go via a elevator then to port.

[wmoebis]

Not so sure that would work as smooth here. I don't think Cargil would let you store grain then sell to Pioneer.

I am not familiar with your grading standards and will look into them. However here we can get diff grades/protein at every elevator and then what the grade actually is. This might not be what they offer to buy your grain for tho.

I think it is great that you can have consistant grades/protien from elevator to elevator. Do your graders have to pass a standard, universal gov't grading course? Or where do they learn the skill of grading.

I believe the contracts that we sign for malt were implemented at the request of the Malt and grain Co's to insure product availability to make forward sales.

From what I have seen and herd is that this has worked good for the maltsters and the grain companies and that there is some thought that wheat may fallow foot print. That way the grain companies, brokers and even the CWB would know what quality and quantity they have commited to them and could make sales accordingly.

[charliep]

I will highlight that the CWB has and does make sales to maltsters/exporters
without farmer contracts or knowledge of western Canadian quality. There is
always a significant book of sales on through the spring and summer prior to
harvest. Cash plus is different in that there is a farmer delivery contract
including price (with or without an "Act of God" clause).

The malt barley question will be an interesting one in the new world. I think
malt barley exports will increase significantly after August 1 and the total value
of barley will increase. Not what Schmitz and Schmitz say based on their
theoretical model. I digress.

[malleefarmer]

wmoebis the grading is all done by sofia infratec protien/moisture/bushel weight machines and screenings are done by another machine.

Every elevator has the same machines.

The only human input into our grading is staining and number of insects imputiers in a sample if its warranted.
Shot grain is done by visual and or falling numbers machines

Elevators here in South Australia are 75% owned by vitterra and 20% owned by AWB and now a few private storage sites are coming on stream to offer more competition.

Its in vitterra best interest to all buyers operating at there sites as they need througput of tonnes to make money regarless of who buys it.

Of cousre vitterra have a distinct advantage knowing exactly what is int he system at all times

Hope im not boring boring you guys with this stuff

[charliep]

Not boring at all from my side. A mechanic so nice to talk about the physical way things happen in Australia and functions of market participants. Australia is a model that will be reviewed here in Canada for the changes that are moving forward to the CWB.

On that front, are you aware of any farmer based studies that demonstrate a drop in prices/revenue after the single desk was removed? That is the arguement you see in Canada all the time but I have never seen any articles, studies, etc, from Australia that would document this. Australia has always been aggressive in making sales (even in single desk days) but that was from a Canadian perspective as a competitor in the market. To get everyone really cranky, Aussie share of the Japanese wheat market has been increasing while Canada has been shrinking.

[TOM4CWB]

Dear Charlie,

Same for US sales.

We had an opportunity to be providers... but chose to save the 'single desk' and reduce volume and revenue from these premium markets.

Instead we ship grain to the east coast... and back again... to prove how good the CWB is at logistics. Then we sign multi-year shipping contracts to subsidise wheat sales to the EU and Africa... wow... we are brilliant marketeers!

[charliep]

Sometimes we (the CWB) sells feed wheat off the east coast and moves it south to the Carolina's. Pretty expensive freight bill.