wheat buddy is out.

[MBgrower]

Are the new wheat and barley commissions providing this type of information to farmers forced to pay check offs? What is it that they do anyways?

[bucket]

Nope and nothing are the answers mbgrower.

[jdepape]

Good idea. Where can you see it?

[bucket]

Depape

It's not an idea. He has been publishing it for quite a while.

If every western farmer read it, the system would change quickly when they look at actual basis, port prices etc.

[northfarmer]

it available through his subscription service.

as I have stated before on this forum the lack of proper and effective arbitrage of our markets is costing us millions and rail and logistics is not the only cause.

[MBgrower]

We have futures markets that provide liquidity and price discovery, however basis is allowed to remain hidden. Now i ask, how is this allowed? If only Ritz and Harper understood how fair markets should work to stimulate competition. Obviously they dont, or theyre objective was to transfer farm wealth directlty to a few canadian grainco families .

At least we have access to the usda trade reports for some kind of idea what our grain is worth.

[jdepape]

MBgrower:

How is basis hidden?
(This is an important discussion - IMHO.)

[MBgrower]

Just asking for transparency between port prices and country prices to measure prices differential. Are the graincos country prices currently netting them $0.25/bu or $3.00/bu? No one knows.

[farming101]

My view is that the basis is inaccurate. Minneapolis futures are quoted in USD. Friday's close for the March contract converts to $7.16 CAD
Grain buyer's cash bids are quoting a basis of say, -$8.00/t basis Mar futures for February delivery and a cash price of $203.65/t CAD or $5.54 CAD. It doesn't compute.

[bucket]

Machinery dealers are quick to point out the fx on new machinery. Fertilizer gets 2 conversions.

Not sure why no one can see the discrepancy. ?

[bucket]

Machinery dealers are quick to point out the fx on new machinery. Fertilizer gets 2 conversions.

Not sure why no one can see the discrepancy. ?

[farming101]

Yes MBgrower, that is exactly what Canadian farmers need to know. What really is the difference between port prices and the primary elevator cash bid.
Many refer to this as an "export basis".

Portland bids for January Dark Northern #1 14% on Friday were $8.31 USD(10.33 CAD)
In Vancouver the price quotes are $329.87/t CAD or 8.98/bu CAD

First,why is the Vancouver price for a similar wheat much less than at Portland?

Second, why is the price the farmer receives much less than at Vancouver? The canola "export basis" is about $60.00/t CAD. Does the HRSW "Export Basis" need to be over $3 CAD per bushel to Vancouver and over $4 CAD to Portland?

I could be all wrong on these calculations but at first glance this is what many Canadian farmers see.

[bucket]

9 bucks canadian at the port should still give a midpoint sask price of over 7 bucks. And everyone is making good money.

[farming101]

Some have said that when the system is full or backed up all the buyers can do is widen basis to slow down deliveries.
Why not go "no bid"? While it may be discouraging for a producer who needs to move grain immediately for any number of reasons, going no bid is not nearly as disheartening as offering a crazy low price.
Another thing producers are missing out on is a functioning Canadian futures market for wheat. I do not know why the Winnipeg wheat contracts did not get any traction. Could it be because the commercials have greater control over the Canadian wheat market if they avoid using the new contracts?

[jdepape]

farming101

One factor keeping interest away from the Winnipeg ICE milling wheat contract is the lack of cash price reporting. Traders will refuse to enter a market for wheat futures if they don't know what the underlying cash wheat prices are. ICE has failed to provide that.