Melvill,
When talking with a local CWB farm rep yesterday... we had a frank discussion about CWB pricing policies.
Clearly the pricing/sales of CWB through the pool system is hurting everyone who is skilled and needs the opportunities modern markets provide.
This policy is hurting he environment, MUCH MORE WINTER WHEAT WOULD BE GROWN in western Canada... if the CWB had a market driven pricing structure.
It is not fair to charge the CWB sales dept. with the responsibility of making decisions of selling wheat for my farm and associates... which is what happens for the most part now. Basis is a HUGE problem because the pool system of formula pricing... instead of market demand driven sales... this is tearing the CWB system down.
Ontario Board cash elevator pricing yesterday of $260/t for Hard Red Spring... and $280/t for Hard Red Winter highlights the issue in no uncertain terms.
ALL CWB Producer Pricing Option grains the CWB sell now are priced through the POOL and always have been. This is backwards and needs to be reversed. The CWB people MUST be responsible for facilitation of sales... not making the sales themselves. Daily Cash sales can easily be turned into a yearly pool price for those who need formula pricing and don't want to make personal choices of when to sell.
WE Wheat growers MUST be responsible for our own decision of WHEN to sell the grain we grow... just as we are in non-board crops. This is only fair to every part of the grains industry... and a requirement for a market based economy that must compete in the global market place to survive.
IT IS GREAT TO SEE CWB CWRS FPC CASH PRICES APPROACHING US FARM GATE DNS PRICING.
US Elevator Co's have pricing programs that are not entirely driven by US grower decisions as well. The US basis will be wider and reflect marketing decisions made by these elevator co's... as they themselves flatten out the pricing of wheat in the US taking the tops off... and bringing the bottom prices up often as well.
The CWB ~!CAN!~ be market responsive and reflect/arbitage world prices. Will the CWB Directors meet the challenge and hire a President/CEO that has the skills to lead us into this new erra! Willl CWB Directors dump the Pro Bono Feed grain policy for the domestic livestock industry... and fulfill their duty and stated obligations to grain growers in western Canada!
We are watching... waiting... and some even hope the CWB can salvaged!
When talking with a local CWB farm rep yesterday... we had a frank discussion about CWB pricing policies.
Clearly the pricing/sales of CWB through the pool system is hurting everyone who is skilled and needs the opportunities modern markets provide.
This policy is hurting he environment, MUCH MORE WINTER WHEAT WOULD BE GROWN in western Canada... if the CWB had a market driven pricing structure.
It is not fair to charge the CWB sales dept. with the responsibility of making decisions of selling wheat for my farm and associates... which is what happens for the most part now. Basis is a HUGE problem because the pool system of formula pricing... instead of market demand driven sales... this is tearing the CWB system down.
Ontario Board cash elevator pricing yesterday of $260/t for Hard Red Spring... and $280/t for Hard Red Winter highlights the issue in no uncertain terms.
ALL CWB Producer Pricing Option grains the CWB sell now are priced through the POOL and always have been. This is backwards and needs to be reversed. The CWB people MUST be responsible for facilitation of sales... not making the sales themselves. Daily Cash sales can easily be turned into a yearly pool price for those who need formula pricing and don't want to make personal choices of when to sell.
WE Wheat growers MUST be responsible for our own decision of WHEN to sell the grain we grow... just as we are in non-board crops. This is only fair to every part of the grains industry... and a requirement for a market based economy that must compete in the global market place to survive.
IT IS GREAT TO SEE CWB CWRS FPC CASH PRICES APPROACHING US FARM GATE DNS PRICING.
US Elevator Co's have pricing programs that are not entirely driven by US grower decisions as well. The US basis will be wider and reflect marketing decisions made by these elevator co's... as they themselves flatten out the pricing of wheat in the US taking the tops off... and bringing the bottom prices up often as well.
The CWB ~!CAN!~ be market responsive and reflect/arbitage world prices. Will the CWB Directors meet the challenge and hire a President/CEO that has the skills to lead us into this new erra! Willl CWB Directors dump the Pro Bono Feed grain policy for the domestic livestock industry... and fulfill their duty and stated obligations to grain growers in western Canada!
We are watching... waiting... and some even hope the CWB can salvaged!
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