Barley markets continue to skyrocket

[tower]

Adam Smith, you wrote "And again what part of having strong buying competion is bad for farmers?" I just thought I'd mention that I don't see any more competition than I saw last year, what I see is less grain around. I'm pretty sure that's what is driving the markets.

Craig, you wrote, "A positive for the feed market is that it is becoming less likely everyday that barley not already in the bin will make malt grade."

Would that be a positive for the buyers side of the market?

[AdamSmith]

Tower wrote "I just thought I'd mention that I don't see any more competition than I saw last year, what I see is less grain around."

Well Tower here is what I was talking about. The Minnedosa upgrade to 130 million liter per year, that coupled with the Loydminister 130 million liter per year plant that came on line last year, makes for new competition or new demand for farmers grain.

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Minnedosa Ethanol
Husky is a pioneer in the production and marketing of ethanol-blended fuels, and has plans to become Western Canada’s largest ethanol producer. The Company’s first ethanol plant was built in 1981 in Minnedosa, Manitoba and produces 10 million litres of ethanol for fuel and industrial use. During the process distillers dried grain with solubles (DDGS) is also produced – a high-grade protein feed sold to livestock producers. Feedstock for the plant comes primarily from wheat purchased from local producers.

Ethanol is a clean burning fuel that can improve engine performance and reduce tailpipe emissions. At Husky and Mohawk retail outlets ethanol-blended gasoline is marketed under the name Mother Nature’s Fuel.

New opportunities became available when the Saskatchewan and Manitoba governments announced plans to mandate the use of ethanol-blended gasoline in their provinces. Anticipating this decision, Husky initiated construction of a new facility on the site of its existing plant. The new plant which will have a production capacity of 130 million litres per year of ethanol will be completed in late 2007. A second 130 million litres per year ethanol plant was completed in mid-2006 at Lloydminster, Saskatchewan.

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But if you can't see it, you can't see it!

The point is tower there are great marketing opportunities galore for farmers and those opportunities exist within the structure of a free market system.

You and your fellow horsemen all focus on the "possible" negative implications of moving wheat and barley into the free market arena. Yet you never seem to be able to quantify those concerns into dollar amounts. Those attempts to quantify (the U of S so called studies)have been unconvincing at best and pure speculative drivel at worst. But even if we were to acknowledge the conclusions of those "studies", the dollars lost this year alone under the single desk system negate ten years of Schmitz and Gray advantage.

Tower, how long do you think the cwb and it's directors can ignore the current market reality and ignore the all the opportunities that "could become" available to farmers if we were to move to a free market competitive buying system?

Also Tower, how much patience do you think farmers have for the cwb's excuses in today's market climate?

[Fransisco]

Tower said, "I just thought I'd mention that I don't see any more competition than I saw last year, what I see is less grain around. I'm pretty sure that's what is driving the markets."

Check out slide number six in this PowerPoint presentation, it's about a 2mb file so patience if you're on dial up.

http://www.uswheat.org/USWPublicDocs.nsf/a280b21ba0e2ea9385256f3900554e60/8825d305340ac1cd85257355004dd54b

You'll see that steadily increasing <b>demand</b> is the reason why we have the lowest stocks in 30 years. There is less wheat around because more people want it. Current prices are a reflection of all of these people <b>competing</b> for a product of which there is currently not enough of to meet the demand.

Got a bit of a problem figuring out cause and effect relationships there don't you tower.

[silverback]

Tower also never answered whether or not he would agree that a farmers own product belongs to the farmer or the cwb.

Maybe he thinks that my grain is his grain and he is better at deciding what it is worth for my family.

[Fransisco]

Actually he kind of did this is towers twisted view of ownership <blockquote>"if I as a member of the Canadian Wheat board, not the Board of Directors, sell to the board then so long as the board still possesses it I as a member still possess it. Perhaps it's one of these new ideas floating around about taking possession by being involved.</blockquote>

He ignores the facts that he cannot sell it to anyone else, that he has no choice but to be a member of the board, and somebody else pulls the sales trigger. But other than that its still his grain.

Oy vie!

[parsley]

Read Sarah McLachlan's "Possession" lyrics .


Sounds to me like he is possessed by the CWB.

Parsley

[rbrunel]

Husky is saying they are paying 6$ but they won't commit as they aren't up and running, I think they are worried there won't be any left if they do get running this winter. Until they give me that in a contract delivered today or nearby, I am not waiting.

[silverback]

Sounds to me like he is much closer to the cwb than he is letting on.

[tower]

This is an interesting article concerning the current crop and prices. I was wrong, of course. Usage is also going up at the same time as production has dropped off.
http://www.cattlenetwork.com/content.asp?contentid=160290

The point is that marketing becomes easier and we should be lobbying the government to get the wheat board we need to get the best we can.