CWB initial prices increase!

[TOM4CWB]

Charlie,

CPS Red is now worth nearly as much as CWES, so I doubt the CWB is extracting any premiums anywhere.

If I have lightweight Canada Feed Wheat and an unpriced CWB Basis Contract done last spring/summer, priced today, I would literally have to pay the CWB to deliver it to an elevator after all the deducts and basis roll costs were taken off my contracted price!

This same wheat is worth well over $100/t nonboard.

[rodbradshaw]

Tom
Your stressing your self out! Get the CWB out of your rotation and life will be alot easier. I just read Charlies thread on Seed cleaning and we should all do what countryguy is suggesting is eliminate the CWB from your rotation and then if they have acustomer that wants a product and is willing to pay for it they will change the system to attract production. If they know that your going to grow it even though we all bitch about the price and the rules of the game, they don't have to change it. But if you go home and play a different game they will soon change the rules so you will play.
Rod
Rod

[TOM4CWB]

Rod,

The moral problem I have is if I don't use the CWB programs, and experience them, then I can't know what exactly is wrong to try to fix them.

I as much or more than anyone else am responsible for pushing for Producer Pricing Options, and after a heated discussion the CWB staff said last nite,"Why don't you just pool if they are so bad Tom?"

And I guess that if I am pushing for change.

And

Now that change causes major greif for my neighbours.

To the extent that I am a partial cause to my widow neighbours young children being fatherless because of my working on CWB pricing options...

(Western Producer "Dual market advocate applauded in Red Deer" last 3 paragraphs Page 5 March 14,2002)

Others said they wanted less talk and more action to preserve farms for younger farmers facing economic disaster.

"As life continues and decisions are deferred, life on the farm grows worse...

I sang for a suicide this fall...It broke my heart,...

What is actually going to come out of these questions that these producers are coming up and asking?"


I brought Darrell to the Red Deer meeting... and I am partially responsible for the suicide of my neighbour... and the pain and economic stability of my freinds...

Does this explain why I must give my life to try to stop this pain and suffering?

I know the exact context of these remarks as does Ken Ritter and the CWB farm reps, and I was crying as were many people in the room in Red Deer... Where is the heart...?

[charliep]

A common theme here is that maybe the CWB shouldn't be involved in selling feed wheat - particularly the lower quality end of the spectrum. It may be that feed wheat is out of CWB contract specification - similar to non board feed barley where contract spec is 48 lb/bu plus barley with 46 lb acceptable at a discount and 44 lb not deliverable.

An interesting note on CPS wheat is at one company around Calgary has been offering zero basis on new crop feed wheat (Oct. delivery). This has given guys in this community a sniff at $4/bu plus/minus straight off the combine. Why sign CWB contracts on CPS when you have this kind of opportunity?

I have no answer to your question about extra strong and why it has tanked relative to other wheats. The CWB explanation is that CWES is a blending wheat and in years when quality/protein are high (particularly in the US), demand falls apart.

Perhaps extra strong should be run like a Warburton program where acres are contracted for customers down to the acre and variety level. If a customer isn't willing to contract for it, maybe we shouldn't grow it.

[TOM4CWB]

Charlie,

I believe some of our concern on the fixed pricing options has been dealt with this time in the initial price increases!

It is great when the CPS CWES 3CWRS spreads in the initial prices are consistant with the PRO spreads for February!

This is very important to PPO contract holders, thankyou CWB!

The Feed wheat grades however are still over $20/t less and out of line with the PRO's, which are in themselves $40/t below market value.

If the CWB is in fact responsible to maximize our returns, this is a strange way of acheiving this objective!

What about it CWB, what is your marketing objective?