Expropriation of farmers’ assets un-Canadian

[gregpet]

You have heard all the arguements but have just ignored them instead of
answering them.

Why do you deserve an answer chuck?

[silverback]

They will make whatever they can chucky. If they get too high people stop growing it or sell to A DIFFERENT COMPANY! I know in your world we would have a government agency swoop in and set limits on how much profit a company can make, but in the free market margins will rise and fall - NATURALLY.

Have their margins always been at these "inflated" levels chucky? Do packer margins in the meat sector rise or fall when the price of cattle or hogs go up? go down? Do refineries make more profit when the price of crude goes up? goes down?

[gregpet]

[URL="http://www.agrimoney.com/news/soy-crushers-struggle-while-canola-peers-thrive--3447.html"]Here is your answer[/URL]

Now answer why the new crop price of wheat is within pennies in Canada and the US?

[chuckChuck]

Has anybody seen a study looking at canola and soybean crushing margins and doing a comparison?

[chuckChuck]

Silverback everyone on this site knows prices and margins rise and fall in every industry.

The question is whether the Canola crush margins are generally higher than the soybean industry and why is this happening? Is it because of a lack of competition? Or is there some other reason why they are higher in Canada than the US?

[gregpet]

I guess clicking on the link was to much trouble for you. Here it is:

Oilseed crushers should choose their crop carefully.

Just look at the difference in the fortunes of North American processors handling
canola, Canada's most popular oilseed, and the soybeans prevalent south of
the border.

Crushing canola, the ****seed variant, last year earned margins of $129 a
tonne, compared with $28 a tonne for soybeans, according to Rabobank.

And, without a nudge from China, the dynamics look unlikely to reverse any time
soon.

Importance of oil

Part of the difference is down to seed characteristics.

Canola's yield of vegetable oil is, at 42-44%, more than twice that of soybeans.
And oil, largely used in human consumption, is typically three-to-four times more
valuable than meal, the other product of oilseed, an important ingredient in
livestock feed.

Furthermore, canola oil is viewed on health grounds as superior to soyoil,
higher in so-called trans-fats linked to cholesterol fears. California and New
York city have imposed trans-fat bans, with Illinois considering one.

"With a 12% compound annual growth rate since 2001, Canada's canola
producers have demonstrated that they are willing and able to continue
displacing US-produced soyoil for food use," Rabobank analyst David Nelson
said.

Margin pressures

However, knock-on market dynamics have put soybean crushers at a
disadvantage too.

The decision by China to fill its huge deficit in soymeal and soyoil by importing
the oilseed itself, to keep its crushers in business, rather than buying in the
products has curtailed prospects.

"China's surge in soybean imports means that US processors must pay higher
prices for soybeans relative to the domestic price for soymeal, which has
contributed to processor margin contraction," Mr Nelson said.

Indeed, US soymeal prices have proven especially restrained by growing
supplies of distillers' grains, a byproduct of America's booming corn-ethanol
industry, and an alternative protein source for livestock feeders.

"The distillers' grains discount has dissipated as animal protein producers have
done a better job at incorporating the [product].

"Clearly, the entrance of a major new competitor has tempered soymeal
demand, as well as crushing margins."

Hope ahead?

At least the prospect of a slowdown in growth in the US corn ethanol industry, as
tax fillips are withdrawn, provides hope for soybean crushers, in curbing growth
in distillers' grains supplies.

However, the main hope for the industry may be a turn by China to importing
meat - probably largely from the US - to fulfil burgeoning demand for protein,
rather than the feed needed to stimulate its own livestock production.

Even the outsourcing of 2% of China's pork production to the US would lift
America's output by 10%, with a consequent boost to soymeal demand.

"There is a certain logic to China importing some of its pork supplies," Mr Nelson
said, noting that the country often has the most expensive corn, a major feed
component, and has witnessed increasing concerns over food safety in the
livestock industry.

[silverback]

That seems pretty clear and reasonable hey chuck?

What other things can you bring up to try and deflect attention away from the failings of your beloved cwb?

You are about due for another round of supply management ranting. The problem is you never answer anyones questions about whether you want to keep the supply managed system or not? The nfu loves it, do you? Or are you as always just looking for a way to slam the federal conservatives?

[rodb]

Chuck Chuck

Has anyone done a study on handling charges of CWB grains vs open market?

Had a group of Aussies touring and they couldn't figure out why grain company was charging more to handle wheat than Canola. Can you explain?

[blackpowder]

good work gregpet. too bad it's sign language to the blind.
Interesting to note that crush margins and basis levels are completely open. AND we built the industry largely by ourselves without big brother controls on supply demand.
no trace of the ex-directors left on cwb site, Merry Xmas chuckchuck

[bobofthenorth]

Rosassen's real problem has nothing to do with oil crush margins and everything to do with losing his sugar daddy. Its time for a major shakeup in the U of S Ag Econ department. Maybe the fact that they can't do light weight studies for the CWB every other year will help that along.