Barley markets continue to skyrocket

[agstar77]

You like interesting statements T4? In their Sept. 6 newsletter, U.S. Wheat associates claim the open market in the U.S. is the buyers best friend and that Canada and Aust. marketing agencies are artificially raising wheat prices. Hmmm!!

[Fransisco]

You mean this one agstar?

<blockquote>1. The Wheat Buyer’s Best Friend

Amid the unsettling news about the global wheat supply, there remains some comforting news: the U.S. wheat industry’s hallmark open market system is the buyer's best friend. In this dynamic wheat trade market, the U.S. remains the only truly reliable milling wheat supplier in the world.

In the genuinely open market we have in the U.S. today there is always wheat available at some price, both to domestic and international buyers. Supplies can be plentiful or tight, but the system finds a price that rationalizes the supply/demand balance. As the current tight supply situation leads other exporters to pull back from the market, the world's wheat buyers can take comfort in the fact that in the U.S., the store is always open to them.

U.S. wheat supplies will not be withheld from the world market. The domestic reaction to the 1980 grain embargo against the Soviet Union was “never again” and a federal law was passed ensuring that any sales embargo by the U.S. cannot single out agriculture. Additionally, export taxes are unconstitutional in the U.S.

Export taxes or other restrictions are now in place in several wheat exporting countries and are being contemplated in others. Australia, Canada and China practice discriminatory monopoly price and export controls. Together, these restrictions distort trade and currently are helping to artificially drive up global wheat prices unnecessarily to the detriment of all importers and consumers. These policies work against the interests of millers and force the rest of the market to restore the supply/demand balance and absorb the price shock. To do that, U.S. wheat is staying open for business around the clock. </blockquote>

[Fransisco]

Wow, what a great job the board is doing. Canadian farmers get lower than world prices and end users can't get product. Bravo, wheat board, bravo.

[Fransisco]

They article makes one little mistake, an error of omission really. The open market is <b>both</b> the <b>buyers</b> and <b>sellers</b> best friend.

[wilagro]

Franny: You should be in the pretzel business as you like to twist things around.

[Fransisco]

Straight as an arrow willy.

Its competition that keeps everyone honest and gets everyone a fair price.

[charliep]

Perhaps the most interesting questions for me are international feed barley marketing opportunities/prices being accurately reflected in the domestic feed markets? I ask this question because 75 % of barley produced in western is fed to the local livestock industry.

From the malt side, are enough market signals being provided farmers so they can make an informed decision about whether it is worthwhile to take a sample to a domestic maltster/grain grain company for selection versus simply selling to the domestic feed market on the farmers individual time table?

[AdamSmith]

Bottineau Farmers Elevator

Today's barley bids are $4.75 a bushel

Same price feed or malt.

Bottineau Bids Basis Cash
Milling Spring Wheat Sep 30, 07 -0.99 6.98
HRW Wheat Sep 30, 07 -1.34 6.73
Milling Durum Sep 30, 07 -173.70 10.50
Terminal Durum #2 HAD Sep 30, 07 0.00 9.80
Terminal Durum #3 HAD Sep 30, 07 0.00 9.30
Terminal Durum #4 HAD Sep 30, 07 0.00 8.30
Oats Sep 30, 07 -0.46 2.10
Corn Sep 30, 07 -0.53 3.00
Oil Sunflowers Sep 30, 07 0.00 16.00
NuSun Sunflowers Sep 30, 07 0.00 17.00
Canola Sep 30, 07 0.00 16.61
Peas Sep 30, 07 0.00 5.75
Flax Sep 30, 07 0.00 10.00
Soybeans Sep 30, 07 -1.72 8.00
RBST Barley Sep 30, 07 -179.45 4.75
Conlin Barley Sep 30, 07 -179.45 4.75
Feed Barley Sep 30, 07 -179.45 4.75
New Crop Flax Sep 30, 07 -8.07 0.00
New Crop Oil Sfs Oct 31, 07 0.00 14.90
New Crop NuSun Oct 31, 07 0.00 15.40
Lacey Barley Sep 30, 07 -179.45 4.75
Legecy Barley Sep 30, 07 -179.45 4.75
New Crop Soybeans Sep 30, 07 -9.72 0.00

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By the way that Canola price is per hundred weight.

And notice that milling durum price of $10.50


The price of grain is truly skyrocketing,

except for wheat and barley on the prairies.

[AdamSmith]

I also read where the Husky Energy is paying $6 a bushel for feed wheat delivered in Jan.into Minnedosa MB.

And again what part of having strong buying competion is bad for farmers? Willy? Agstar?

[kamichel]

6 dollars? And I sold my soft wheat to the board for 4.68 net to me and will more likely have to take a .4 deduction for 3 and feed. Plus they will charge me 1.7 per bushel to give them the 15 percent midge damage, guess I could clean it. Not sure if the ethanol plant would want the screenings.
Charlie I agree with you 100 percent that the board fails to connect the farmers to the end users.
There was another thread about why Canola is lagging behind the soy oil and meal price. Perhaps it is because there is no direct competition from wheat and barley.