So When Marketing Freedom is finally given

[mustardman]

To Viterra,Bunge and AdM and Cargill, how much will their Shares be Worth? Oh right you'd have to marry in to the cargill family.

And what Will Ritz and Harper get for such great work on behalf of these corporations ?

[malta]

And what are my shares in the CWB worth? I do have an option to buy, sell or own grain company shares.

[ColevilleH2S]

I think their profitability will suffer when they are kicked off of the CWB gravy train, and have to compete against each other for tonnes.

[charliep]

mustardman

What products and services will the CWB offer the supply chain to add value to its stakeholders including the major grain companies?

Can the CWB package services for farmers and smaller players in the grain industry (i.e. indendent/farmer owned terminals, shortline railways, etc.)?

Will note that one thing that has been left alone is government guarantees on borrowing.

Helping grain companies finance grain inventory and price risk management services via pooling are major benefits to grain companies today.

No reason to believe these services couldn't be carried on into the new world.

13. Will the Government continue to guarantee initial payments and borrowing for the new CWB during the transition period?

Yes. During this period, the Government will continue to guarantee initial payments and borrowing for the CWB.

[URL="http://www4.agr.gc.ca/AAFC-AAC/display-afficher.do?id=1311891454058&lang=eng#a13"]Q and A[/URL]

[sumdumguy]

Think the CWB gravy train will be over for many
of the big guys. The semis leaving local elevators
and heading south to get big durum bucks with
supposed export permits that were withheld from
is over. Now we might have a level playing field. I
think shares will go down, wjat you think cotton
and hopper?

[TOM4CWB]

Mustardman,

For commercial grain growers it costed $12/t minimum just to do a CWB buy-back... IF the 'big boys' would do it!

You are 'upside down' on this...

BUT
If our industry works hard and increases efficiencies... there are very likely many spots that competition will tighten up the basis on CWB grain.

What we have now on Basis is a total rip off... even you can see this on CWRS!!!

[$short]

Grain companies basis levels will tighten up some in a non-cwb world.

They will move up and down depending on space, sales, local competition, freight etc. Just like it does with canola.

I expect the biggest chaange will be in freight costs to the customer.

[$short]

oops, that last part isnt worded properly.

The cost of freight to ship from your local delivery point to the customer will be the biggest factor in basis levels charged by the elevators to you.

[Braveheart]

Expect grain co. shares to be unchanged with the loss of the single desk. Their revenue streams will just change. Instead of handlers of grain at max tariffs, they will be merchandisers trading the basis. Profits are more likely affected by the amount of farm supplies sales.

The marketplace may change as elevator companies hook up with end users and more supply chains develop.

The real challenge to increased sales for everyone will be the world economy and political situation.

The single desk buyer only affected farmers income (negatively of course).

[cottonpicken]

I don't know,would need more info to make a call.

Long term i see the sector bullish.

they are going to have much more risk exposure to
price swings and the tools to do that are limited on the
durum malt barley side,wheat wont be a problem.

No major issues as far as i can tell.

[wilagro]

I'm predicting that none of you guys have a friggin clue as to what you will get for your wheat or food grade barley.

Pie in the sky guesswork at the best.

[$short]

Wil.....do you have a clue.....please share your thoughts

[Hopperbin]

I think shares are going up but has **** all to do with the CWB, lol

[Hopperbin]

Mustardman please beg me to explain.

[Hopperbin]

Ok I will just say you did. :-)
For one Bunge and ADM for example are global corporation, Canada is a small but important part of their global business. So small is one reason why the CWB means not a whole hell of a lot.

Other is that they average a P/E ratio of under 10 percent currently. P stands for Price of stock. E stands for net Earnings. Meaning naturally they are making money for every 10 dollars of investment there is more than 1 dollar profit, dividend typically sucks, so they are taking in more money than they are spending equals profit for shareholders, share price should rise. By the way you own them in your rrsp mutual funds.