I asked the CWB by e-mail if the select program was part of the 50% opening call. The reply was no it was not which continues to highlight the fact that the select program works good for the CWB but not for farmers. For many years winter wheat has been grown by many for early season cash flow and delivery off the combine. Many producers count on that early movement so as to not tie up bin space. So the CWB continues with a contract program that requires producers to bin all their production and wait for contract calls. Numerous producers are not prepared to wait and either sell into the standard grade program or the feed market. The board claims it is trying to build this milling market yet by it's very nature discourages producers to participate. While I understand that the CWB wants to spread delivers over the crop year they also need to make an effort to take a percentage of winter wheat at harvest. This program along with KVD restrictions only highlights the fact the board really doesn't give a snuff about the minor classes of wheat.
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How much select winter wheat do we loose because of contract program
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Craig,
The fact that anyone who grows winter wheat must take a $12/t discount to deliver any off the combine or in early fall proves the whole Select program is a deception. Protein premiums on non select CWRW are one stage, $3/t for all Proteins over 11.5.
WHAT A BAD JOKE.
So anyone looking at Fixed Price COntacts are going to most likely be very disappointed... as the opportunity to get this "Premium" is very limited.
COntracting with the domestic feed market is a no brainer. Even our ugly shriveled winter wheat weighed up 62lb/bu last year.
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FREE WINTER WHEAT
IT IS TIME THAT ONLY WINTER WHEAT GROWERS VOTE TO REMOVE THE CWB "SINGLE DESK" on WINTER WHEAT!
US PNW growers can sell Falcon at premium prices, and the CWB won't even take CDC Falcon as a select variety.
It is time the Alberta Winter Wheat COmmission and Western Wheat Growers DEMAND a VOTE!
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Craig and Tom, I'm not quite clear what you are getting at in your two posts. Craig, I understand that you're not happy with delivery opportunities for CWRW Select as compared to CWRW. Right?
Tom, your $12/t comment is related to the difference in price between CWRW for immediate delivery and the price for waiting for CWRW Select delivery opportunites. Is that right?
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Melville,
The CWB only pays one premium for CWRW, that is $3/t if it is over 11.5% Protein. No sliding premiums as the PX gets to 14% as in the Select CWRW program.
FOr years the releases for Select CWRW has been done in Dec/Jan... car order problems... this IP bottleneck has been very difficult to deal with.
The $12/t discount gets around those problems, it can then be handled in the regular shipping system for board wheat.
Normally we don't get over 11% protein, which means this isn't normally a problem in any event.
Falcon a nonSelect Variety here in Canada... I am told is one of the most popular varieties in the PNW, they get PX premiums, and it obviously is a perfectly acceptable milling wheat.
Hard Red WInter Ordinary, usually below 11%px, doesn't trade at anywhere near the CWB discounts in the US.
And clearly many times the Hard Red WInter is worth close to DNS Red prices... instead of $30-40/t discounts the CWB tends to charge us.
It is all a Pool thing... Winter Wheat growers don't deserve a fair price!
Just try to buy this wheat back... and see what the CWB charges on the buy back Lee!
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Melvill
The point I making is that the contract program works well for the board( they know what they have to sell and how much) but this neglects the fact that most producers like to move winter wheat early. If they had a 25% call for select off combine then the board would likely have more volume to work with. Catch 22 If you have more volume to sell it is easier to make sales committments early.
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Tom, talked to Rob Graf, winter wheat breeder at Ag. Can. Lethbridge and Gordon Carson, Head, Cereal Technology at CIGI in Winnipeg - both by e-mail - about the real or perceived differences between quality of Select and Generic CWRW wheats.
Dr. Graf said, "The non-select varieties have various flaws that keep them out of the CWRW Select class. Thank you for asking the question, because it is not just all about protein content, as some would like farmers to believe.
In general, the non-Select varieties have combinations of weaker gluten properties, poorer flour colour, and/or poor flour yield."
Mr. Carson said, ". . . there is enough documented work to show that the quality of gluten forming proteins in the Generic CWRW is still considerably inferior to Select varieties even at the same protein levels. Select varieties have a higher milling yield, lower flour ash, better flour color, higher water absorption, higher gluten strength, and higher loaf volume than Generic varieties."
Mr. Carson sent me some results of Select/Generic comparison testing done at the CIGI Lab. They tested a mix of 40/30/30 Osprey/Bellatrix/Readymade against 100% CDC Falcon. It's a large file but I'll e-mail it to anyone wanting it.
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http://www.ndwheat.com/growers/details.asp?nID=2340
Winter Wheat
Winter wheat acres surged up 85 percent over last year to 370,000 acres statewide. Jerry continued to be the most popular variety, holding 44 percent of the acreage. Jerry has led acres for the past three years mainly because of its good winter hardiness and resistance to leaf and stem rust. CDC Falcon came in second with 15 percent of acres, followed by Jagalene in third with 12 percent. If moisture and weather conditions in fall continue to be ideal for winter wheat planting, greater interest in variety trends will likely be noted by producers and customers.
...CDC Falcon came in second with 15 percent of acres,....
Bottineau Bids Basis Cash
Milling Spring Wheat Aug 31, 07 -0.88 5.83
HRW Wheat Aug 31, 07 -1.21 5.48
$5.48 US equals $5.92 Canadian
Quality means SQUAT, if you don't get paid for it.
The Real world will buy CDC Falcon and pay value, the Clown Wheat Board and their wheat breeding cronnies love to talk and talk about inferior quality, but at the end of the day, it means SQUAT. Because unless your select winter wheat will fetch you well over $6, (it's a premium product ya know)from the beloved board. All the words in world just mean SQUAT.
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