Editorial: Wheat prices – a great big mess

[TOM4CWB]

"Wheat prices – a great big mess"

I am surprised that the folks in Japan are even offering that much for our wheat. Since we break contracts.... leave ships waiting for months to load... and have very different quality than the US DNS quoted.

The CWB could play games all they wanted...
make all the claims they made about our quality being better than DNS...
and the ability to deliver.... when we shipped wheat from one end of the country to the other... to fill the orders for sales to Japan.

Russians can deliver Canadian quality wheat... just as well as we can from western Canada. The fact we are within $8/t of Ausie wheat... should tell us the market is competitive... and we have a large volume of CWRS to sell... which shouldn't be a surprise to any farmer in western Canada!!!

AND the fact that Canola has gained over $1/bu in the last month... should tell growers the system does work... when market forces are allowed to pull prices straight! Like $10/bu Canola is back!

The basis has narrowed in western Canada. US Hard Red Winter is worth MORE than DNS.

We are getting EXACTLY what we deserve for our wheat. Just as we did in CWB days... only the pool averaging is missing.

Facts:

From DTN Nov 6 2014 CWB report:

"Projected Canadian Western Red Spring (CWRS) returns ranged from C$247 to C$290 per tonne in the annual pool, and C$254 to C$297 in the winter pool.

The last report had CWRS between C$244 and C$287 for the annual pool, and C$251 to C$294 in the winter pool."

Those are Nov 2014 CWB port prices.

So... is the CWB undercutting every one else... just like they always did before????

Chuckchuck... take a valium and call us in the morning!

[fjlip]

Buyer with 20 plus years at various companies seems to know and is trustworthy. Many times HO says cars are coming and last minute RR does NOT spot and maybe next week, because they went to another more convenient spot. It's just a mess of shitty communication and power play by RR's. Screwed up system, embarrassing for the 21st century!

[TOM4CWB]

Since Japan must blend CWRS into DNS quality wheat to put it into their flour grist...

The blending cost to get rid of our CWRS can't be cheap!!! What percent CWRS to DNS quality does Japan use each year? 20 percent CWRS quality to 80 percent DNS in Japanese bakeries be close?

[TOM4CWB]

BTW Chuckchuck,

Tell my why Glencore, Cargill, Richardson's, or Paterson would undercut each other and lower high quality wheat prices... since they now have a monopoly on the worlds high quality wheats?

There is NO benefit to them at all to price discount CDN wheat. Only lost profit.

[bgmb]

fjlip

the grain cos have a fair bit of control over where they get their cars spotted. Maybe they cant get every car where they want exactly when they want but they do choose where cars are spotted.

[bucket]

Tom

Maybe you haven't been invited to the mafia collusionary afternoon teas the graincos hold occasionally?

I haven't , but you should have been elected spokesman by now.

Try a little harder, will you?

[farmaholic]

Tom, but they(Canadian grain sellers)
are all competing for that same business/tender and any one of them don't have the monopoly on Canadian grain. Soooo if the want the business you have to undercut your competition unless you can provide the buyer some other tangible benefit for choosing you.

[TOM4CWB]

Bucket et;el:

All I did was point out some rather simple facts that should be obvious to anyone who understands marketing and value chains.

A tiny bit of balance to this 'Editorial'... point of view.



Cheers!

God Bless Canada!!!

[bucket]

Yeah you got to get off whatever Kool aid you are drinking.

You and your buddy ritz have things really ****ed up if you haven't realized it yet.

[bucket]

And don't tell me I want the old system bac. I don't but this one is not a good replacement.