ICE DURUM WHEAT FUTURES & OPTIONS (specs)

[Tom4Wildrose]

Hopper,

Like on election years how the CWB paid growers the PPO gain in futures... just during the election... then went back and refused to extend this to the rest of us who year after year got ripped off on PPO's.

Now I find out that the CWB was holding a big chunk of our milling CWRS wheat futures on KBOT/Chicago instead of MGE (was said the trade was too thin)... which has had a huge basis costs for us on our farm in 2011.

The lack of transparency and honesty at the CWB has literally cost our farm well into the $...5 figures over the past few years alone.

15mmt of Canola traded on our ICE futures... we have needed Barley, Durum and Wheat to have this same transparent marketing system for the Northern Prairies/grainbelt for decades.

Finally we have the opportunity to move forward... if the CGC will allow it!

[wilagro]

Tom: Is the CGC your next target?

[katoe]

Probably will be cause Tom knows how to fix everything

[charliep]

Just curious if anyone has read the Compass report? Good reading if you want to have a look at the future.

[URL="http://www.agr.gc.ca/info/consult/cgc-ccg/pdf/compas_cgc-ccg_e.pdf"]Compass report[/URL]

Something will happen to the CGC this spring. The conservatives have tried to modernize the Canada Grains Act twice already.

[Tom4Wildrose]

Hmmmmm... Willy and the BigK;

Page 6 of the Compas Report... 2006:

"An impediment to Canada’s ability to respond successfully to the
preceding challenges is a heritage of mistrust among the agricultural
players and stakeholders. One confidant described Canada’s grain
industry as a kind of Hobbesian “a war of all against all.”2 There is
certainly mistrust between farmers and grain companies that has historic
roots. In the absence of survey data, it is a challenge to estimate to what
extent the mistrustful voices heard at our forums, especially in Saskatchewan, reflect the sentiment of grain farmers as a whole."

You folks prove the point... cause I think you both are from Alberta... isn't that right?

By the way.... I didn't write this and am not quoted anywhere in it to my knowledge.

Glad you two have the best way forward all mapped out!

Want to share your plans with us????

[Tom4Wildrose]

FYI:

"One confidant described Canada’s grain
industry as a kind of Hobbesian “a war of all against all.”2"

"2- Private conversation with a longtime observer of the grain sectors in Canada and the United States, June, 2006. The phrase itself is from the description (1651) by British political philosopher Thomas Hobbes of human existence in the absence of government and civil society."

[charliep]

Sometimes you have to look at where you are before you can determine where you are going.

Todays durum prices (Alberta and Montana)

Last weeks PRO 1CWAD 13 - $8.60/bu.

Initial payments - 1CWAD 13 - $4.35/bu.

Fixed price contract 1CWAD 13 - $7.09/bu.

100 % EPO 1CWAD 13 - $6.75/bu

Montana # 1 Durum 13 % protein.

Average US durum price June to October - over $10/bu.

[charliep]

Forgot to put the price in.

Montana #1 durum 13 protein - USD $9.60 to $10/bu

[hobbyfrmr]

Charlie, Given the options, and perpetually in need of cash flow, I would choose the fixed price at $7.09/bushel. I am ASSuming the US price has been converted to CAD$ 9.60/bu. This would leave $2.51/bushel difference. So, 300 acres (small farm) X 35 bu/acre X $2.51/bushel price discrepancy = $26,355.00. Remove $6,355.00 for trucking the extra miles, this still makes $20,000.00 vanish into thin air. Now a days, this value is regarded as small potatoes, but, my small farmer, small thinking regards $20,000.00 as a lot of money. After taxes that is approx $1366.67 per month. That would buy the groceries for my family. Funny, seems to me when I started farming, I can recall thinking that would be kind of a good accomplishment for the farm.

[Tom4Wildrose]

Hobby,

It costs close to $20/t LESS to get to export position from Lethbridge than from Northern Montana. NO extra trucking... higher price than Montana grower gets right in the local elevator AT HOME.