Horse:
"If these conglomerates are so good why didnt they get in the game sooner ? Mabey because they didnt want to compete with CWB?"
Selling against the 'single desk' of the CWB was irrational... as the CWB had no practical 'Cost of Sales'... where every private grain handler has an absolute cost of sales they need more value on resale to break even.
So the CWB was played off... at times... against the large grain traders. Buyers had sellers over the barrel.... because the CWB had no increased cost of purchasing large volumes of grain... where all others had to be the higher payer... to get the grain. Instead they (Private grain Co's) then were forced to hedge on a grain exchange... which in turn then meant the sale was transparent and the futures price rose to cover the sale.
As the CWB was exempt from these market forces by the 'single desk' buying law... If General Mills wanted 2mmt... they signed a paper and did not need to bid the price up to get this kind of large volume.
I had Wheat Millers literally laugh in my face... telling me I had to lump holding reserve grain for them (Via the CWB)... and then we be forced to sell at a much lower prices after the market sank again.
Governments are VERY poor managers of assets... as they confiscate our property... then have no real motivation to preserve or increase the value of those assets... as they can come back and confiscate more if 'it doesn't turn out' and there are large losses.
In fact to keep their gov system 'happy' the folks in charge of 'confiscation' of assets NEED to be Kept BUSY. BUSY with the job of Confiscating/Taxing.
"If these conglomerates are so good why didnt they get in the game sooner ? Mabey because they didnt want to compete with CWB?"
Selling against the 'single desk' of the CWB was irrational... as the CWB had no practical 'Cost of Sales'... where every private grain handler has an absolute cost of sales they need more value on resale to break even.
So the CWB was played off... at times... against the large grain traders. Buyers had sellers over the barrel.... because the CWB had no increased cost of purchasing large volumes of grain... where all others had to be the higher payer... to get the grain. Instead they (Private grain Co's) then were forced to hedge on a grain exchange... which in turn then meant the sale was transparent and the futures price rose to cover the sale.
As the CWB was exempt from these market forces by the 'single desk' buying law... If General Mills wanted 2mmt... they signed a paper and did not need to bid the price up to get this kind of large volume.
I had Wheat Millers literally laugh in my face... telling me I had to lump holding reserve grain for them (Via the CWB)... and then we be forced to sell at a much lower prices after the market sank again.
Governments are VERY poor managers of assets... as they confiscate our property... then have no real motivation to preserve or increase the value of those assets... as they can come back and confiscate more if 'it doesn't turn out' and there are large losses.
In fact to keep their gov system 'happy' the folks in charge of 'confiscation' of assets NEED to be Kept BUSY. BUSY with the job of Confiscating/Taxing.
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