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No increase coming for 2011/12

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    No increase coming for 2011/12

    Phoned the Wheat Board talked to a nice lady who knew nothing but was pleasant about it and she forwarded me onto the sales department. Their response was their is no premium customers this year, the contiguency fund has to be mantained at a certain level. So as far as they can see no increase coming in initials ,they have not even asked the feds for an increase.SO MUCH FOR TRYING TO SUPPORT A SINGLE DESK... Talked to two elected directors and they are about as smart as a fence post. But they did know the lawyers and advertising dollars are coming out of the POOL acounts...they seemed to be brain washed it to the belief that the feds are bad bad bad. But had no answers as to any way to solve the problem. But the feds are bad bad bad... Who really runs the CWB it is not these two elected directors they are just a couple of YES MEN who cannot even think for themselves.

    #2
    There should be a big adjustment payment requested for durum.

    Comment


      #3
      Wwould be curious if all recommendations to the federal government for adjustment payments have to be approved by the CWB board of directors or whether the CWB operations side can initiate the process.

      Nothing to complicated about getting an adjustment payment approved. Just the slow process of the CWB making the recommendation and the federal government bureaucracy working through their process.

      Comment


        #4
        sure hope so,that fpc is looking better all the time.

        Comment


          #5
          Charlie, my understanding of getting adjustment payments approved is a little more complicated. There is extensive market research done (by the feds) to see if the increase is warranted, can be sustained, etc.

          Ever since the year there was a deficit in the pool that the gov't had to pick up they've been more diligent.

          Comment


            #6
            Profarmer, who really runs the CWB? I still suspect organized crime rings, lol, but day to day, Ward Weaselsal, with daily texts from Adrian Measner. Serious, no lol.

            Comment


              #7
              You are right Braveheart. Having said, how much analysis needs to be done on durum where the PRO is $9/bu and the initial payment is $4/bu?

              Offering ideas is useless but will bang my head on the wall and ask why there are not pooling tools that reduce risk like shorter pooling periods (feed barley today) and cash pricing tools (feed barley contracts/malt barley cash plus or heavan forbid the feed wheat 200 % EPO). The decision on the "A" series is past us. The first task of the new board of directors and the operations side on January 1,2012 will be to review all the contracting alternatives (pricing and delivery) in the CWB tool box and select the most appropriate ones to the end of July. These contracts will be the CWB spring board into the new open market effective August 1, 2012.

              Comment


                #8
                Charlie, I agree with all your post except I'll say that offering ideas is never useless. What is useless is not throwing some work into ideas to try and make a difference.

                The new wheat board will have work fast to offers something of value. Shorter pooling periods would likely be more dynamic. What about regional pooling or specialty pooling (eg. Warburton)? Ending the broad pool-all try to be the equalizer approach has to come to an end imho.

                Comment


                  #9
                  The CWB may not have full control adjustment payments (they do initiate) but they do control early payment option premiums.

                  Other posts have highlighted the 100% durum EPO but a more realistic level may be 80 %. The premium cost of an 80 % EPO yesterday was $18.90/tonne (51 cents/bu). How much risk is there for the CWB in an 80 % EPO? If the risk is minimal, why the big discount?

                  For interests sake, a March MGEX $7.50/bu put would cost 6 cents/bu, a May $7.50/bu put about 22 cents/bu and a July $7.50/bu put about 33 cents/bu. Accepting durum is different, a farmer could come up with put option strategy for about half this cost.

                  The cost of a 80 % CWRS EPO is $1.65/tonne or 4 cents/bu.

                  Comment


                    #10
                    Interestin thread,life of pools in Australia now
                    ranges from 4 to 5 months to traditional 15 to 18
                    month and everything in between.
                    High risk pools with alot of hedging down to low
                    risk pools,but risk is always with farmer compared
                    to cash sales
                    Another company as a innovative pool pays
                    every for 12 months
                    Fact is all these various pools are to attract
                    people back to them as pooling has become a bit
                    of a archaic dinosaur to many
                    Myself have pooled 200 tone in cargill premium
                    pool about 7% of my mce

                    Comment


                      #11
                      Interestin thread,life of pools in Australia now
                      ranges from 4 to 5 months to traditional 15 to 18
                      month and everything in between.
                      High risk pools with alot of hedging down to low
                      risk pools,but risk is always with farmer compared
                      to cash sales
                      Another company as a innovative pool pays
                      every for 12 months
                      Fact is all these various pools are to attract
                      people back to them as pooling has become a bit
                      of a archaic dinosaur to many
                      Myself have pooled 200 tone in cargill premium
                      pool about 7% of my mce

                      Comment


                        #12
                        Interestin thread,life of pools in Australia now
                        ranges from 4 to 5 months to traditional 15 to 18
                        month and everything in between.
                        High risk pools with alot of hedging down to low
                        risk pools,but risk is always with farmer compared
                        to cash sales
                        Another company as a innovative pool pays
                        every for 12 months
                        Fact is all these various pools are to attract
                        people back to them as pooling has become a bit
                        of a archaic dinosaur to many
                        Myself have pooled 200 tone in cargill premium
                        pool about 7% of my mce

                        Comment


                          #13
                          Interestin thread,life of pools in Australia now
                          ranges from 4 to 5 months to traditional 15 to 18
                          month and everything in between.
                          High risk pools with alot of hedging down to low
                          risk pools,but risk is always with farmer compared
                          to cash sales
                          Another company as a innovative pool pays
                          every for 12 months
                          Fact is all these various pools are to attract
                          people back to them as pooling has become a bit
                          of a archaic dinosaur to many
                          Myself have pooled 200 tone in cargill premium
                          pool about 7% of my mce

                          Comment


                            #14
                            Interestin thread,life of pools in Australia now
                            ranges from 4 to 5 months to traditional 15 to 18
                            month and everything in between.
                            High risk pools with alot of hedging down to low
                            risk pools,but risk is always with farmer compared
                            to cash sales
                            Another company as a innovative pool pays
                            every for 12 months
                            Fact is all these various pools are to attract
                            people back to them as pooling has become a bit
                            of a archaic dinosaur to many
                            Myself have pooled 200 tone in cargill premium
                            pool about 7% of my mce

                            Comment

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