Spring Wheat Rally/Miscellaneous

[charliep]

Just highlighting the rally in spring wheat.

Also noting the variability in CWB fpc basis levels. An interesting comment from last night's meeting in Camrose was variability in canola basis levels versus CWB deductions (two different animals). For what it is worth, I suspect there is less variability and more predictability in canola basis than there is in CWB producer payment options. The basis levels in both cases are an adjustment to reflect the differences between futures markets and the cash markets the commodities are sold in. One is determined in competitive environment. The other is determined by a single buyer based on the relationship with the pooled prices.

[URL="http://farms.com/FarmsPages/Markets/tabid/214/Default.aspx?page=chart&sym=MWZ11"]dec mgex futures[/URL]

<a href="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/2011-12/2011-12fpcbpccharts.pdf">page 13 to end</a>

[TOM4CWB]

Dear Charlie,

The formula pricing by CWB Fatten was not representive at all of reality.

If Japan needs wheat @ $324/t... demand drives the market the same as it does in Canola.

To once again say that all wheat prices will drop to $240/t... (the CWB lowest price market) again shows just how out of touch the 'single desk' dreamers are from reality. THERE is MARKET Dicipline. Canola shows this to work well. Further quality and services cost us growers big $$$...

Just because co. A has a $40/t under basis for October... I can say forget it and find a competitive bid at $20/t under... because these marketers at co. B have demand led purchases drawing product to fill a sale.

Presto... price discrimination functions in a multi seller environment every day.

PLUS... making a sale at $60/t under the futures would never happen... as growers would tell that marketer to stick it where the sun don't shine.

PRESTO... market dicipline... a bottom much higher than the CWB theory of how to price discriminate works.

Was truly revealing to see just how out of touch these CWB folks think growers are; and why we 'single desk' clients are almost always on the low side of global grain prices.

[TOM4CWB]

Dear John,

The PPO programs are backstopped by the CWB contingency fund. Growers who flat price/buy PPO EPO's pay into maintaining these funds.

To take our money... from those most likely to object to pooling and the CWB 'single desk' is a BAD idea!

[FarmRanger]

Good points jdpape.

It's hard to believe this was said by Chairman Oberg:
<i>“Maybe it is time to move beyond the sound bites and start listening to farmers – all farmers, including those who have different views...” </i>

Not only does he not listen to the farmers who want to have full ownership rights to their grain, but he is threatening, no, promising to use their money against them from their expropriated production.

Nyet Nyet Soviet

[TOM4CWB]

Dear Craig,

'Interested Parties' are Producers also. There are 9 in our Permit book.

[mustardman]

It may be flawed but its still better than the "voters list" the cons are saying gave them the right to end the wheat board.
They received 36% of the vote but only 60% of the eligible voted and less than 2 % are farmers. SO the dentist in Moncton and the shopkeeper in Vancouvers chinatown ARE deciding that the CWB should end?
I will end the board when I vote it to be in a plebiscite.

[jdepape]

Tom - I know what you mean but you've never
been under the illusion that the money the CWB
captures thru the PPO's and puts in the
Contingency Fund would ever make it back into
your pocket. Have you?

The CWB has always said that the Contingency
Fund was not producer money. It's a shame, but
it will never come back.

[Southpaw]

Mustardman
Why should you have a say in how I sell my grain?????

[silverback]

waaaaah, waaaaah, waaaah,

Stevie & Ritzie are gonna take away my soother, waaah, waaaah

Freedom of choice is coming, suck it up buttercup.

If they are such a great organization they will have more grain to deal with next year than this one. So what's the problem? Could be you think deep down they don't give us a premium too!

[jdepape]

Mustardman:

You had me at "it may be flawed..."