Existing New Crop Barley Contracts

[charliep]

Have had some feedback from farmers who have signed new crop barley contracts. Need feedback how different maltsters and grain companies are handling things in the return to the single desk world.

[chaffmeister]

My understanding this morning is everything that was locked in with Rayglen etc, those contracts are now void!!!!

[northernfarmer]

I have some contracts and they say they will be honored. One for just malt with a line company - minimum price. ANother is feed/malt and that is apparently still good.

[lohner]

my contract was a minimum price if board, maximum price if no board.

[lohner]

Sorry Northfarmer, you are in the same boat as me. I locked in new crop malt for 4.15/bus , and my contract is done, as is yours.

I took control of my farm for cash flow needs, now I don't know where I sit. One thing for sure I know the PRO is going to be no where close to $4.15. You try to tell your banker that you had $4.15/bus barley locked in and now you don't!!

Thanks CWB, bunch of bastards!!!!

[charliep]

Is anyone in the situation where they have made US malt barley sales? Will note today's special bulletin.


CWB quote "Farmers who’ve signed selecting barley contracts for delivery into the United States in anticipation of an August 1 open market in barley should contact the CWB to discuss options. Please call the CWB at 1-800-275-4292, e-mail us at questions@cwb.ca , or phone your Farm Business Representative."

Curious as to how the CWB resolves this issue. You can contact me directly if you don't want to be publc.

Always amazed how all these deals are cut behind closes doors with process of varification.

Will note that the daily price contract for wheat had elements that promised (and hasn't delivered - most of the 650,000 tonnes from this past spring will be to used to price old crop on storage tickets) a methodology to allow improved access to US markets. This is taken from the CWB own press about changes to the DPC.

CWB quote: "As part of the DPC operating guidelines, the CWB is also committed to keeping the spread between the DPC and the Producer Direct Sale (PDS) relatively narrow and stable with the proviso that under exceptional circumstances, the spread could be widened to protect grain that was required for the CWB marketing. This provision has never been exercised. The linkage between the PDS and the DPC provides farmers with the assurance that both the DPC and PDS will track the average price to cross border elevator prices for grain of similar quality. If the DPC price is low relative to an elevator across the border, then selling to the U.S. using the PDS should be attractive. Conversely, if the PDS is high relative to the cross border prices, then the DPC is also likely to be high."

Source: http://www.cwb.ca/public/en/farmers/producer/daily/