Gas is going up? WTF!!! They call it price restoration what a crock of shit. How about grain price restoration already.
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In vertically integrated companies if you are losing on one part you have to make it up on another.
So oil producers make it back on gas prices.
Graincos just keep making it because they have bought off politicians and fly under the radar for the grain/food price ratio.
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Go figure this one... the most expensive fuel tax jurisdiction in Canada has the cheapest listest pump price on CLEAR diesel i've seen anywhere from winnipeg to langley. BC charges somewhere around $0.24/L in carbon and fuel taxes. Posted price along the fraser highway in the lower mainland today was $1.05/L. GST out that equals $1/L. Take out the taxes and that geta you back to a base price of $0.76/L. If the retailers, refiners, middle men etc can make a living at that, why are we north of 80 in the land of CHEAP oil?
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Good idea, won't work.
DTN does this and basically Cargil only.
Your asking the grain companies, to disclose an important component that adds to their basis, profit, calculations. The market just isn't competitive enough at this time. The timing is WRONG, only chance for grain company participation is during a major drought or a short crop, when they need there wheels to turn or they are short on a position. Also cross boarder pricing, with rail or trucking alternatives, more foreign assets inCanada, with collection terminals in the prairies and at port. Then there is the grading, Apple to Apple comparisions, canola is easy, lentils # 2 or better, etc
Larry has it figured out.
Disclosing pricing, basis etc is nice but...without competition expect a lot more meetings on the golf course.
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