wheat buddy is out.

[jdepape]

You want to sell in USD?
Fine. Here's what you're looking at:
#1 CWRS 13.5 - somewhere in SK

$5.80/bu CAD

OR

$4.70/bu USD

If you want a USD basis, that would be 106 under March Mpls.

You can figure out the FX rate....

[BTO_farmalll]

No, No, No, No Dape', Thats Not The Way Reality Works in The Real World!!!!!!!! Only in Comedia Where The Lowest Price is The Law!!!!!!!! And Dape', Where Yous Getting This Phony Fckin Basis #'S at????? You Guys Pull em' Outta yer A$$ er What!!!!!!!!!

[BTO_farmalll]

To Me This is Reality - $5.76 US Convert = $7.16 CDN Minus Say $0.20 Basis is Plenty Margin fer These Crooks = $6.96 Net CDN - Now Thats Reality!!!!!! Freight Can Come Outta The Port Price, Dey Aint Hosing Me fer That Too!!!!!!

Dape',

Curious To Know Why When These Crooks Buy Grain, They Use Majic To Convert The xChange, BUT When Selling Us Fertilizer its Straight Forward Math - US Price (Based on NOLA) x FX = CDN Price Charged to Dumb Farmer

Hmmmmmmmmmm???????????

[jdepape]

Mar futures = $5.76 USD
Cash price = $4.70 USD
Diff (basis) = 1.06 USD under

Or do it like bucket wants to:

Ftrs at 5.76 USD = 7.11 CAD
Cash price = $5.80 CAD
Basis = 1.31 CAD under

Or do it the way the trade does it:
Ftrs at 5.76 USD
Cash price = $5.80 CAD
Basis = 0.04 over (FX included)

No matter which way you do it, the cash price is the same.

[jdepape]

Now there's your mistake BTO.

<b>BASIS is not their MARGIN.</b>

[farmaholic]

Larry should post a sample of his product to encourage subscriptions. People will likely need to be on blood pressure pills after they subscribe.

Prices will always be just high enough to keep you from going broke or keep you in the game. There's rooms full of people calculating your COP, you better hope you grow at least average crops to remain playing... both sides too, inputs and crop
prices. They know our business as good as us if not
better. You will be "lucky" enough to hit
the odd home run or grand slam but only afew in your career. Good luck.

[BTO_farmalll]

Dape',

Yes I Know How They are Calculating The Basis and xChange!!!!!! What You are Failing to Do is Explain WHY They Use Majic To Arrive at The CDN Price!!!!!!!! And While yer At It Explain The Straight Forward Math Used 2 Sell Us Fertilizer!!!!!!!

[bucket]

Let's all agree it's more important to forget the fact that the cumulative export price is 330 a tonne.

Then add in minor facts that the elevator system running at 50 percent capacity.

Sure it's the farmers fault they keep selling into an empty system with the graincos promising delivery 3 months after the fact. Sheesh.

[jdepape]

farmaholic:

Be careful what you ask for. Weber's Wheat Buddy isn't the gold standard you think it is.

- he presents the "posted basis" alongside his calculated "actual basis". Saying his calculated basis is the "actual" basis implies that the posted one isn't. The fact is they are each a basis - one has FX imbedded in it and one doesn't. One is just as relevant as the other.

- he says "all of them (graincos) are not using foreign exchange to compute basis levels". however, the way they are imbedding the FX in the basis is a long-standing convention of the trade in Eastern Canada where they have been dealing with buying grain in CAD and hedging in a futures in USD.

- he implies there is something terribly underhanded or illegal about it, saying "if ADM did this in the US, there would be more spooks and black SUV's than ADM employees in Decatur".

There is absolutely nothing wrong with the way they are doing it - here or in Ontario. It is widely accepted by all market participants in Ontario, farmers included.

In my view, Larry is simply fanning the flames of discontent among those that have yet to understand how it works and who see it as a way for graincos to rip them off.

I wonder how it would be explained if the CAD was at a premium to the US - making Larry's "actual basis" better than the "posted basis"? How do you explain grainco prices that are worse than they "actually" are?

[LWeber]

You ****ing hypocrite Depape.

Pipeline margins have gone from $25 to $32 dollars to $100.00 to $125.00.

Capture the carry on that.

While you defend it and the grain co's - the rest of the world is laughing at Canada - the same way they were before.

Did you or did you not try to sell your "expertise" to the CWB because they were hedging FX wrongly. Now the right way is not to include it at all.

The market is always right bullshit. ****ing grow up. Canola is inverted - basis is 30 under - yet the market is right...

Try selling your capture the carry stigma on that.