US PRICES FOR DURUM AND HRS

[charliep]

agstar77

Just curious how much it cost the CWB to send out an adjustment payment? Isn't it more cost effective to wait until November when more information is known and send out one bigger cheque versus a whole bunch of small ones. Would note the August adjustment (regardless of who is delaying) would be based on the July PRO information - only a small increase at that time. A major increase in the August and likely another round of increases on September 27. Initial payment spreads have remained relatively consistent with the PRO ones but will be a need to review once the crop is in the bin. Farmers who need cashflow (as has been highlighted before by others) have several CWB producer pricing options to choose from).

If you put politics to the side, November/December is a much better time for the federal government to announce adjustment payments versus a whole bunch of small ones. Perhaps you disagree. I am also curious as to whether you would recommend using the PPO alternatives the CWB offers to generate cash flow?

[chaffmeister]

Agstar:
The CWB and 5 others filed level-of-service complaints against CN (Sept 5).

The CWB and nine other grain shippers were core interveners in a previous case (July), which was also supported by the governments of Alberta and Saskatchewan, other grain-industry organizations and major farm groups.
http://www.cwb.ca/public/en/newsroom/releases/2007/090507.jsp

So tell me, how did the CWB effect the result of the first claim? I guess if it had been "successful", there'd be no reason for the current claim.

Just how is the CWB contributing? Wouldn't the process we're seeing still happen even without the CWB?

[charliep]

To bring back to your question tower, I would review alternative for dealing end of the crop year marketing decisions. This year is a prime example of why change is needed. Farmer decisions about which crop year to price into impacting old crop payments (reduced payment potential by $5/tonne according the the July 2006/07 PRO information). Extended crop year (well into August in many locations this year) which plug the elevator system up with grain that may or may not have a sales commitment (inventory plugging the system). Old crop deliveries that is priced in the new crop pool and will likely reduce the current crop year returns (why the monster adjustments over and above the current crappy basis levels).

[AdamSmith]

tower, it appears the "it" in "makin it work", to you, is the cwb.

for me and many others the "it" in "makin it work", is the entire market structure.

As it exists today, the cwb is a huge impediment that stands inbetween farmers and the opportunities farmers have in making the most out of our farms. Or more precicly it's the cwb's single desk authority that is the impediment.

Should you ever come to accept the notion that it's better to have the solid commitment and support of 30% of farmers and zero annomisity from the other 70% within a voluntary cwb/free market system, than the disdain of well over half the current forced membership, you might find that there is good value in being able to accomodating those who truly and freely choose the cwb as a marketing partner

That in my opinion is the cwb's only salvation.

Doing the best you can for those who freely choose the cwb will, give the cwb a new lease on life and the goodwill of all.

Continuing to fight everyone who opposes the monopoly will, in my opinion, only guarantee the cwb's demise.

[Barleyman]

Tower and friends- just wait until the next round of cwb elections. You're toast unless several pro choice people run against each other and your guy slips up the middle.

[Fransisco]

Further to Adam's comment, tower you once said that a big problem in your eyes is the number of changes that have been made to try and appease those of us who are not interested in being in the CWB tent. That will not change until you let us out of the tent.

We are not interested in being appeased, we simply want out. The status quo will not change our mind and neither will a bigger stick.

Your chances of running a successful business are a lot greater when you work with like minded individuals who want to work with you. Tieing differently minded people, who don't want to work with you to the CWB mast will not make the ship sail any better. The opposite is true, you start to take on water.

[agstar77]

Chaff you don't get it . How do you expect the individual farmer to get cars to ship grain without going through a third party, considering the way the railways drag their feet and ignore or interpret rulings to satisfy themselves. Until we see open running rights nothing will change.

[chaffmeister]

agstar - you don't get it. What's any of that got to do with the CWB?

You're saying that with the way it is right now you just about have to ship/sell to Viterra. And without the CWB, I guess you're saying you'll still have to ship/sell to Viterra.

Where is this great countervailing power the CWB is supposed to have over the nasty grain trade?

At least with freedom to go wherever with your grain, you're not shackled to the CWB/Viterra machines.

[silverback]

Ah, the old shell game again.

Those big mean railways are the problem right now, they are the reason we can't pay world values for your grain. We have to fight them tooth and nail. Then we will take on the multinationals. Don't ask us why your pro's will never match world values it's not our fault.

Keep grasping redstar.

[parsley]

agstar logic........

Railways are problematic working with the CWB.

Therefore

Railways will not be problematic working with 'more of the same' CWB.


That is logic from dumber than dumber.How many times did you repeat Grade three, agstar?

Parsley

[agstar77]

Not as many as you repeated kidergarden.

[ag.student]

multiple buyers should bring more competition and therefore better prices. my concern with that theory is that those same buyers are competing on the other end of the chain. what happens when they compete against each other for wheat sales and then base their elevator bids on those sales? prices will settle at some market equilibrium. The $60000 question is whether or not it's still better than CWB. Competing for grain handle should cause some cuts to elevation, handling costs, etc. Any comments?

[parsley]

agstudent

You ask

"what happens when they compete against each other for wheat sales "

The CWB does it all the time right in Canada!. They compete against Ontario all the time. We don't have a single in our own country.

Parsley

[parsley]

agstar,


Think about your answer, and answer yourself why it is a poor answer.

You will eventually figure it out.

Give yourself two full days, and if you haven't figured it out, email me and I'll tell you.

Parsley

[Fransisco]

Agstudent says, "what happens when they compete against each other for wheat sales and then base their elevator bids on those sales?"

If they make a sale without actually having secured the grain first or at the same time I would think that they would take an offsetting position on the futures market so that they are protected against any price movement until they secure said grain.

At the end of the day it is supply and demand that determine price. It's not determined any more by what price a grain company sold the grain for than it is by what it cost a farmer to produce it.

A company that tries to undersell the market by too much soon finds itself with no product to sell.

Good question.