Feed Wheat PDS Buyback

[TOM4CWB]

Charlie,

I checked yesterday... and I can buy my "Feed Wheat" back at $277/t. The PRO is $220/t

Where in the world does the CWB come up with these values?

If "Feed Wheat is worth $277/t... why all these massive discounts being added to my PPO pricing?

What are these people doing?

[charliep]

Can't be much help except agreeing there needs to be a better process for determining the spreads and discount for feed wheat. Would be interesting to compare the relationship between corn and milling wheat at the time you signed the contract versus today(or whenever you settle). Again, the process is built on the CWB managing their pooling risk (through some unknown process) and the uncertainty this unloads on the farmers that use producer pricing options.

[TOM4CWB]

Charlie,

We priced some CWHWS (Hard White) in January at futures only @ $224/t If I were to deliver the Hard white on this contract to the CWB as feed... we would get $94/t. 60 plus lb/bu... 70% HVK... nice looking wheat with 35% bran frosted kernels.

I guess it is time to build a flour mill.

[melvill]

tom, if you know the HVK number, sounds like you've had the CGC or SGS do a complete run down on quality. Have you? If not, I'd suggest you send a sample - at least 750 gm - to SGS in Calgary and ask for a complete rundown including all the standard stuff but also including HVK and falling number. You never know, you may have something that's better than you think. The guy to talk to there is Art Lupuliak. The phone number is 403-290-0903

The SGS web site is:
http://www.ca.sgs.com/

[TOM4CWB]

Lee,

Thanks for the info!

A person has to really question the value CGC grades and CWB marketing has for our farm.

Knowing what we have... and a fair market value... is the first step to extracting a premium.

It couldn't be more obvious than it is today... with the CWB buying feed barley off the "trade" (Agents of the Board) for export... and discounting cash wheat prices and feed grades in the manner they do... they have deserted the commercial grain grower who is only trying to "earn" a fair and honest living in western Canada.

The CWB should pack up and grow a true monopoly crop... at the bottom of a mine shafts in Manitoba... and become the Canadian WEED Board! I know many of these folks we talked to at the Hemp meetings ... that would welcome them with open arms!

[melvill]

Speaking of weeds for food, saw that Quaker Oats sells rolled wild oats in stores right next to their old-fashioned rolled oats!

[mcfarms]

I would be real interested to hear your falling numbers Tom, You did know your Old friend Vader is the chair of the Wheat Subcommitee of the Western Standards Commitee. And falling numbers testing was to be implemented byt his year. I haven't been given a good explanation yet as why it wasn't. It's likely still repeatability issues with RVA equipment but no one will agree to an interim step so here we sit selling our wheat by archaiac standards on the farm and seeing it taken and sold in the world market by intrisic values. (falling numbers included) I can't even fathom the millions we've lost in the last five years at the farm level over this and yet no one seems to be willing to raise a fuss over it.