Grain Companies/CWB Deferring Open Market Feed Barley Sales?

[charliep]

The CWB is allowing the feed barley sales that were made during the proposed open market period. The commitment on this business was delivery off the combine (Sept/Oct) but indications are that this business is to deferred to Nov/Dec to allocate shipping to other grains. Is this peoples experience?

[TOM4CWB]

Dear CHarlie,

THIS is Chairman Ritters NEW CWB?

We are now allowed to deliver our barley in Dec/Jan instead of Sept/Oct off the combine.

Price still $3.60/bu. No compensation offered for a farm logistical increased cost of close to $20/t to deliver into the revised CWB period.

What are we supposed to do?

The domestic barley has cratered since the CWB got the export barley market back...

Logistics were all in place to export this feed barley product in a timely manner that maximised growers and industry logistics and reduce costs of moving the feed barley into the export market.

But the CWB knows better.

With freinds like this who needs enemies.

ANyone who thinks the CWB has done anyone a favour... except for domestic feed users... IS BLIND.

There are none so blind as those who will not see.

Chairman RItter... offer us growers fair compensation... better yet allow the sales to occur as the market had asked them to do the barley sales. WE would be MUCH better served by a market based solution!

THE CWB JUST DOES NOT GET IT.

A BULL in the CHINA SHop... no doubt about it!

[TOM4CWB]

Dear Charlie,

We have a neighbour that contracted his barley, was counting on it being gone off the combine... had many opportunities besides the export market... but signed up and now is stuck.

This is going to be very painful for many people who were counting on these sales that were booked.

Only in Canada... would we end up recking so many peoples lives... in 1993... now in 2007 again.

The CWB was told to facilitate these barley sales... and make it happen. This is our CWB style marketing... maximum cost and most inconvenient terms... no wonder why we get a low return!

[crusher]

I can see us getting a screwing on this end, but won't the board be negatively effecting the buyer also? Plus is it the CWB's plan to make the shippers look unreliable too. I'd planned on piling my barley and then shipping Oct/Nov.

[btjadenlepp]

doing some checking around, finding problems in certain areas only. sask contracts look like they'll be ok but in mb we're having problems getting immediate delivery.

who's going to pay the demurrage on those vessels?

[charliep]

When you consider Saudi Arabia does about 500,000 tonnes feed barley a month plus all the other north africa/middle east business (see http://www.fas.usda.gov/grain/circular/2007/08-07/graintoc.htm) and the business for the most part is optional origin (doesn't matter where comes from/handled by the trade), likely easy to move cargoes around between different regions of the world/shipping periods. Lots of risk involved with this move however and assume the CWB/trade is considering this. Perhaps the good news (sorry malleefarmer) is the Aussie may not have the exportable supplies they were expecting.

Just did the adding on the amount of barley that moves into the middle east/north africa and came up with about 10 MMT/year or over 800,000 tonnes per month.

[charliep]

Been hearing that in southern AB some big growers that haven't grown barley for a long time , did this year in a major way. Now piles are growing and no real market in sight.
It sounds like the Government will appeal, yes that will take a long time. We need to push both the feds and at least the AB gov to move on barley now.
Need also a collection of factual events where by the CWB has interfered in contracts and pricing. Also what are the grain companies doing with malt? are they going to offer a cash price in the mid $ 4 dollar range ? why not? why notlet them deal with the CWB and we get our money up front at the bin.
Are farmers going to sell to the maltsters this fall if they don't pony up some cash?
my barley is still 3 weeks away, so wondering what those that are combining now are doing?
thanks
Erik

[malleefarmer]

No problems charliep alls fair in love and war and grain marketing.

To be quite honest i feel sorry and angry for you guys with barley decision and to watch you prices recede whilst the rest of exporting countries prices are still heading north,if it wasnt so serious id laugh as its like something out of the keystone cops at cwb.....

[SASKFARMER3]

This whole situation with Barley, Wheat Durum and The CWB needs to be put to bed once and for all. We need one vote Yes or No, Enough is enough. I was bagging our Barley for November/Dec Delivery.
I just want FREDOM to do with my grain what I want.

[Fransisco]

It's not that you 'want' it.

It's that you -need- it to be able to run your own buisness to the best of -your- ability.

[freewheat]

Those that vote "no", would be able to sell as they see fit, and those who say "yes", (all three of them), would be stuck with the wheat board. How does that sound? Rather than having marketing choices imposed on eachother, we just simply go our seperate ways, and bingo, it's done.

[kamichel]

Seems to me that moving the delivery month to Nov. Dec. should carry a price premium as all future prices seem to be carrying a premium. Likely the buyers would have agreed or no change would have happened. So how come no storage premium was negotiated on behalf of the farmers as the CWB is supposed to be working for the farmers.

[winwin]

'The directors must act in the best interests of the corporation.'
Who said they had any obligation whatsoever to farmers?
The LAW says NO.They MUST protect the board itself.
If they had any duty at all to farmers,how could you possibly defend a DOLLAR per bushel drop in the price of grain caused by them?
No defense.
They hide behind the act which clearly gives them a duty to the cwb---not farmers.

[parsley]

Exactly, winwin.

When Goodale changed the CWB Act, he could have revised it to act "in the interests of farmers".

He chose not to make this revision.

Parsley

[TOM4CWB]

Winwin,

The CWB bylaws REQUIRE the CWB Directors to respect our common law property rights.

Shouldn't Agstar77 and Benny start looking after "designated area" grain growers instead of supply management farmers and livestock producers? DO the CWB Directors really believe CDN. domestic feed consuming farmers are more important than the suppliers growing the wheat and barley the CWB markets?

Is part of the CWB requirement of "Orderly Marketing" to keep the price of feed wheat and barley low... to save the "single desk" orderly marketing system... logic used by CWB managers and single minded Directors?

How else could these people justify destroying the domestic feed barley market?

I know this domestic feed issue is not the in stated objective of the CWB marketing system either way... but perhaps this is the underlying issue that drives CWB management?

What other logic would drive the Agstars of the CWB world to defend the undefendable and proclaim negative is positive?