CWB Not Obligated to take grain on the "C" Series

[charliep]

Noted the following comment in this week's bulletin.

Quote "The CWB has announced 100-per-cent acceptance for 2007-08 Series A wheat and durum delivery contracts. Future acceptance will be determined based on prices and sales opportunities. If additional acceptance is expected to lower the pool return, the CWB may not accept any Series C wheat for 2007-08. Farmers are therefore encouraged to commit their remaining wheat tonnage to Series B by January 31, 2008. "

I note the second sentence about the "C" series. A good thing in that potentially rewards farmers who contract early ("A" or "B" series). However there is still need for a safety valve that allows end of the crop year sales. Could be cash pricing on the "C" series. Could be operating a separate end of year pool. Could be any number of other programs.

What are others thoughts on this issue?

[TOM4CWB]

Charlie,

It is obvious the CWB is trying to avoid year end pool/marketing cross overs like happened last year on July 31/07.

It is simply unacceptable to not allow cash pricing year round.

These people have a death wish... they couldn't do a better job of tearing their own
organisation apart.

[mcfarms]

Thats OK Tom I'm not planning on carrying 70 0r 80 percent of my wheat into July and rolling it into next years pool like I did this year.............. But you're right the pool system has not evolved and therefore must die off( I think it was darwin that figured that out certain others are a little slower on the uptake) If you want to run a pool run it like the ABB.

[kamichel]

My hunch for a while now has been that the CWB does not have the tons committed from farmers to support the current pro. I am expecting a pro price crash.

[TOM4CWB]

Does it matter?

As the reports of the trickle of non-board going across the 49th south... and the CWB keeping up their stellar record of non-reality customer service... does anyone care if the CWB licensing system becomes more broken by the second?

What is our vote on this matter... does anyone care? Should a stupid law be followed that is corrupt and only "Certain People" are required to follow?

Why should Organic Grain be allowed across the border... why should DPC lottery winners make 100's of $$$K's more than their neighbours...

Is this CWB system even close to being "fair"? Do we even care?

In 1996 the CWB told me the corrupt ways across the 49th... if I would keep my mouth shut I would be allowed the "Privilege". Do we care that it has/is going on under our noses?

When I sold grain 10's of thousands of bushels south... and was given pool money to move the grain south... and huge money above CWB prices... all by "CWB" fair trade rules... did anyone care? SO I ask...What is "fair"?

[wmoebis]

mcfarms, What's the ABB. and how does it work?

[mcfarms]

www.abb.com.au

[Zaphod]

Is it possible the board is just trying to scare farmers into committing everything early, because they want to front-load sales? Does that suggest they are expecting the wheat market to sag later in the year? If so, the pooling system is still a terrible way to send price signals.

[charliep]

Of interest to me is the lagging US export sales in old crop and the begginning of some talk of stress on newly seeded US winter wheat. The old/new crop inverse has been cut in half. The current contracting system masks these signals and the risk/opportunities they present. Coming back to my original point, it also impacts farmer delivery and customer service opportunities this this summer.

[kamichel]

So what if farmers want to commit grain to a series C? Perhaps in this year of record prices, grain prices may still be good if some farmers have grain to commit to a series C. Mind you I never have in mine or my dads years of farming. Yet they cannot take advantage of good prices and the best thing that helps us all, demand, a sale, disappearance.