New Crop Malt Barley Contracts

[charliep]

How aware are you of the both the CWB and maltster malt barley contract proposals? How aggressive have the maltsters and grain companies been in approaching farmers with new crop contracts (even if just production contracts)?

I ask because of Wheatking's posting in the previous thread. There are attractive new crop offering for almost all crops with the gaps filled at the Western Crop Production Show in January.

[crusher]

Haven't heard any yet. Probably just grow fencerow to fencerow canola. At least I'll have a functional futures market and many basis offers.

[Burbert]

Haven't heard a peep. Guess everyone is thinking Xmas, not business. Us framers will still be here after the holidays, that would be the time to grab their attention, cause when the bills start to roll in post Xmas, we'll be worrying/scrambling to pay them, hence willing to sign just about anyting!

[charliep]

Burbert

Would you not agree the outlook for 2008 and possibly the next 2 years is very optimistic. Rising costs are an issue and worthy of discussion. I suspect that most farm budgets will show profit from the coming year, however.

I suspect most farmers can hold new crop pricing decisions into early 2008 and not worry about crop prices totally collapsing. What I am suggesting is that malt barley needs clear new crop price signals so farmers can make seeding decisions based on solid information.

[charliep]

Even the CWB new BPC futures only (realizing basis is unknown) is providing some good new crop pricing alternatives. Using a zero basis off MGE for 1 CWRS 13.5, an Alberta farmer can lock in $7.25/bu today. Using $25/tonne under KCBT, an farmer can lock in $6.25/bu for CPS. What price is available in the market place today for malt barley?

[TOM4CWB]

Dear Charlie,

Until the CWB comes up with a decent forward pricing tool for wheat... barley is no further behind.

The Force Majure is a total joke.

The CWB Basis can NOT be tracked by any logical or reasonable market signals...

It is, as it stands now, a political tax to steal revenue from growers who don't like CWB pools.

If this had happened in the US... someone would be in jail by now!

Why exactly should barley be any different?

[barleybob]

Talks are apparently stalled and you may find it interesting that the hold up is a demand from the malsters that the CWB put more of the maslter's purchase price in the hands of the farmers up front. Quite an interesting reversal of roles!!

[charliep]

barleybob

I am hearing the same thing. Curious how the real negotiations occur between the CWB and maltsters without farmer input? Relates to Eriks thread but farmers are listened via survey's/focus groups with information interpretted by the CWB but are really not involved with the establishment of/terms contracts or pricing signals needed. From Erik's thread, why wouldn't the maltsters be at the meeting with farmers and the CWB. What is needed now is industry solutions.