Bunge Eastern Plants Pay Farmers $11.61 a bushel for Canola, West?

[farmaholic]

...No pasta plants in the heart of Canadian durum growing country. Not a lot of flour mills in the heart of Western Canada. Not a lot of lentil consumption in lentil country.

Once again my take on Western Canadian Canola pricing strategy by the GrainCos:

How to keep a $10.00 ceiling on canola prices? Every time there is a move higher in futures they widen their basis to hold the price somewhere under $10.00. Then everyone's magic number is always $10.00 only attainable using GPOs or TPAs. Also flip to which ever month benefits them the most, when they want.

It still seems broke to me.

Anyone sell SPOT lately? That didn't require a deferred delivery?

[agstar77]

What no pasta plants 2 years after the CWB. What a shocker!

[fjlip]

Didn't I see Harper using a shovel to start one?

[Braveheart]

The idea for a farmer owned pasta plant was opposed by the tyrannical CWB for so long the idea died. Some of the people with the passion to make a pasta plant work have died as well.

[riders2010]

Oh I see maybe that's what Stevie wonderless was doing with the shovel. Burying the pasta plant idea or shoveling the bullshit he s been saying.

He probably has that shovel with him full time.
Sounds like he has some shoveling to do about sending our troops to combat without consulting
Canadians first.

[bucket]

Braveheart

You do realize it was murad AL Katib that was with harper at the transportation hub announcing a pasta plant?

Now he is doing the cta review.

Photo op for a review seat. Not a bad trade. And it cost Katib nothing.

[jdepape]

I'm late to the table but gonna address the original question about the price in Hamilton vs SK.

The spread shown is $68.20 per tonne.

Handling at the elevator - let's say $15

Rail freight from SK to TBay - not sure, but let's guess at $35.

Handling through TBay - let's call it $15

Laker frt to Hamilton - $20 is light but let's use it anyway.

All tolled, we got to $80 pretty easily, and I think I'm being conservative.

So, to buy canola in SK for $444 and ship it to Hamilton, you'd own it in Hamilton at $529 - almost $20/tonne higher than the local bid in Ontario.

Looks to me like they are paying the local guy somewhat LESS than replacement value.

[bgmb]

what about my wheat example depape ?

[jdepape]

And whoever said that $10 is the magic number and the graincos know it - was absolutely right.

Everywhere you go, guys are saying $10 is their number - so why wouldn't the graincos know this!

And everytime we get close to $10, the farmer selling picks up. We see it in the price - I've seen days when the futures go up and the basis goes down - and we end up sitting no higher than $10.

Right now, if you compare the stocks in the system to the expected demand (kind of a "pipeline stocks to use ratio), there is over 7 weeks' worth of canola in the system. Usually it's between 3 and 4 weeks. And I've seen it as low as 2.5 - at which time the basis gets very attractive.

There is absolutely no reason to pay more for canola right now. They can get all they need at $10 - and they don't need it anyway.

Farmers have more influence on price than you give yourselves credit.

[jdepape]

bgmb - what was the question?

Trucking to Van?

If that was it, none of the terminals in Vancouver are set up to receive trucks (although I heard one had tried it)