Prairie Companies Stand By Their Basis Bids!

[SASKFARMER3]

Farmers might need to get used to vexing basis levels in prairie wheat prices, say a senior grain company official and the Western Grain Elevator Association, in a post on producer.com.
The complicated reality of wheat basis is a product of the end of the CWB monopoly and each company’s methods of coping.
“We don’t know the specifics of how all the companies do it,” said Brent Watchorn, Richardson International’s executive vice-president for marketing.
“We all took a little different approach as to how we were going to put our prices in front of the farmer.”
So their basically saying. Tough shit this is how we're doing it and you dumb farmers have to deal with it.
Well theirs a easy way to deal with it do like Klause and bypass the elevators, or drop wheat that goes to them.
Right now we're equal to usa values, if usa elevator is posting 5 then in Canada its 5. No dollar change unless you mr farmer deliver their and cash the usa check in Canada.
So grain companies if we go back to equal dollar is our basis going to work out again 5 in USA vs 5 in Canada or will we have a 4 dollar a bushel wheat here. Magic.
So basically grow wheat or don't their going to F$&k us either way.
Have a great day, baisis is basis wi our magical formula for Canada.

[Lex]

Zero wheat or barley on my farm in 2015 and cutting canola by 75%. Less fertilizer and lots of chemfallow.

[Braveheart]

What they're really saying IS, it's a complicated reality.

[riders2010]

Makes the shitty wheat board look better each day.

[riders2010]

Translation It all depends on how much we want to steal from you on any given day. If someone else is stealing more than we are we simply cannot allow that to happen we will steal more also.

[bucket]

How do they do it in the states with more elevator companies and production?

[blackpowder]

For the first time in history we can at our fingertips, see what the basis is every second of the day.
I think farmers have a lot to learn regardless of the screwing or not.
My God, how can anyone miss those old days!?

[MBgrower]

What he is saying is farmers are too stupid to figure it out, so lets just end the interview and call it complicated. I bet Richardson staff all had a good laugh reading that article.... stupid farmers.

[farmaholic]

Broken record time.....

First I guess we need to realize the grain is only worth "X" dollars on the open world market.

Who ever sells it to customers is going to incurr costs getting it to port position.

Freight, elevation, cleaning, demmurage, admin costs, extra margin, weighing and inspection, add what ever else I missed or you want.

Where does the money come from to pay the seller's expenses?

Under the old regime, you really only "saw" freight, elevation, cleaning, W&I. The rest of the " hidden costs" were paid out of the pool accounts.

Other costs where there but not transparent.

I am not siding with the GrainCos. Does the basis have to be as ugly as it is at times? I doubt it. But the true costs are likely higher than the $1.65/bu deduction off the grain checks of the not so distant past.

Should I pay for others, lack of service, poor planning or incompetence.... no ****ing way. But we do.....

Because there is no accountability in this screwed up monopoly, duopoly, extortion, collusion ridden system

If dispatch (is that the right term for loading vessels ahead of schedule) is ever incurred, do you think for a second you will see one nickel of it?

If more attractive freightrates can be negotiated between shippers and RRs, will you see any of that?

That is why I said Producers need to know what makes up a "FAIR" basis. And each cost of the most common parts of that basis. Not some magical number someone pulled out of their ass and can get away charging desperate farmers who have payments and other cashflow requirements.

[tstep]

Have to laugh at all the comments. Even though the CWB had hidden costs and other shady things, that whole single desk marketing looks pretty good after what has been happening the last two years.

[oneoff]

And this too shall pass.....someday.

Where's Tom?

And we will continue to get exactly what we will tolerate.

End of rant.

[Hopalong]

On bucket's question of how they do it in states with more elevator companies and production,have often wondered the same thing.
Opening post infers that we get a dollar per bushel less for wheat.
Whenever someone suggests change to make our transportation and handling system and government regulations more like US, there are all kinds of reasons why we should not change.
Some of resistance dates back to wheat board and Crow transportation, both of which received broad farmer support at one time.
Could be we are our own worst enemy in getting beneficial change.

[LEP]

Wow guys, wow. All I can say is that I have never received so much for my cereal grain since the end of the CWB. Good riddance.

It isn't easier than the old days, but has never been better.

[Hopperbin]

Oh yes we recieve more than 3 dollars per bushel. No fusarium mixing although a target on high fuzz may surprize. I would wo der how the old cwb would have dealt with what we have. We will never know so look to the future. Jag how is your cwb ellevator doing?

[Hopperbin]

Anyways I challenge the old cwb to buy my grain cheaper like they said will happen under open market. I still think I will sell to bighest bidder.