Prices from the East, Prices from the South

[BennyHin]

Saskfarmer3: You forgot to tell us how many tonnes your American relative already sold at a much lower price; how much he will sell at the current $9.20; and how much he will hang onto and sell at 5.00/bu next June.

Tell us next July 31/08, what his AVERAGED selling price was.

You sure talk a lot about the USA, are you a dual citizen?

[BennyHin]

TOM4CWB; You have lots of spare time on your hands.

Why dont you remind all of us how much Ontario wheat is produced, how much is consumed locally, how much is exported, and when it is exported, where does it go.... to premium markets or garbage dumps?

[BennyHin]

lifer you said:

"Benny Hin or Burbert or wilagro or Agstar or "man" in drag or whatever other names you use. Something does not become true just because you keep typing it".

Give your head a shake, Franny has more custumes in the tickle trunk than Mr. Dressup ever had.

Speaking of Mr. Dressup, I think the man-in-drag reference was previously aimed towards an organic farmer who participates in this discussion group.

[chaffmeister]

Since you like averages so much Benny, consider this:

The average price for DNS 14 in Montana since July 1st is $6.36 (converted to C-bucks per bu).

The average CWB FPC for CWRS 13.5 in Alberta is $5.27.

Oh yeah - and the PRO (a "weighted" average no less, including a projection of good things to come) is $5.51.

Why are the CWB's average prices so much lower than those in MT?

<b>Please tell me - what is so bloody sacred about the CWB?</b>

[SASKFARMER3]

Benny thats glad you asked see he feels the 9.20 is excellent for him for cash flow so he is selling all his production.
1000 acres at 47 bus = 47000 bushels x 9.20 = $432,400.00 check is going in the bank next week
Canadian way on my farm have to deliver what CWB is calling
25%
11750 bushels x 2.98$ = $35,015.00 now and wait and wait and wait till fall of 08 for the rest have to take out cash advance to cover bills etc.
What a great system benny boy keep telling me how great the CWB is.
Go ahead make my day.

[Lifer]

Benny whether or not one wishes to post under different names doesn't really matter any way. So I probably shouldn't have commented on that. If you can put a good debate forward under different names great. It can add to the forum. So go ahead with your multiple names I'm okay with it.

To say the following though you do have to admit is pretty stupid.

"I guess in a "free market" you would be the first one in line willing to UNDERCUT your neighbours"

How is a "fair price" established in the controlled and orderly marketing system you love?

When does your system become greedy?

Sorry for lacking originality on the man-in-drag reference. Its all I had at the moment.

[FarmRanger]

"I guess in a "free market" you would be the first one in line willing to UNDERCUT your neighbours"

That knife cuts both ways in a free market. Which buyer would be willing to pay another nickle more to secure his supply?

With only one buyer, where's the incentive to pay any premium?

[kamichel]

What about prices from the East Asia. Aug 1 or so I remember hearing that business was going to be not as usual. I am still waiting hmmm, give us world prices. Competitive bids. Better yet a premium. So a big bad export company comes to Canada and gets tons of grain because farmers have only one store in town to sell to. The CWB sold pooled grain earlier in the season for a cheaper price so now all fixed prices must carry a lower price to compensate for the lower pooled price. Should we start dumping compost and manure now or tomorrow?

[mustardman]

Hey Guys how about lobbying our M.P to get off their a-- and raise the initial price . They were asked a month and a half ago to raise it by the cwb.
What gives?
Oh ya I forgot they don't like the CWB so they won't raise the initial price- Same thing happened last year-

I'll have to get a hold of Mr Anderson on Monday . If we're in this system then lets get it going and not just bitch and complain. Call your M.P

[SASKFARMER3]

I do agree with the Cut the Mustard if we have to live this year with this pathetic system then Raise the Initials to a decent level and lets get on with things. Other wise hit the Borders is going to happen.

[charliep]

Will note that adjustments have mainly come in October/November (even in the Liberal government years). Why would this year be different? Also have to note the cost of the 80 % EPO is relativey cheap ($2.75 to $3.75/tonne). Why wouldn't farm manager's use this product to improve cash flow? Or better yet, have all payments at 80 % of the expected total payments with the federal government responsible for 60 % level and the CWB responsible for managing risk around the next 20 %?

The best way would be to do away with government guarantees and let the CWB announce initial payment increases as they see fit (with the risk remaining of pool deficits staying with the CWB/farmers). An area that is a remains a problem and hasn't been fixed is using initial payment spreads for fixed price contracts.

To the initial topic, the best way to deal with initial payments is cash pricing at delivery. Back to the original thread topic.

[TOM4CWB]

Mustardman,

The Finance and treasury depts have to approve the risk contained in the Initial payments, It is a complex proceedure and involves much more than just a "That looks OK" approval. Ag Canada folks do a background check... it is being worked on.

The lack of a comprehesive business plan from the CWB also in the past few years has slowed this process down indicators have been.

I agree with Charlie, this is really a "Red Herring" in the whole CWB cash flow issue; as the CWB normally sends out payments within 10 days after settlement of a CWB sale... IF you need more than just a initial pool payment.