U.S. Average Wheat Prices

[chaffmeister]

Agstar says:

“So you have data that shows significant on farm storage and/or hedging to get higher prices?”

You make a fundamental flaw regarding grain marketing when you assume that if farmers aren’t storing grain then they’re not getting higher prices. The idea espoused by CWB culture that grain sales and movement must occur at the same time is so far from reality that it brings to serious doubt whether the CWB really understands how grain markets work. With all due respect, do you?

Farmers need:
- the flexibility of selling when the price is right (for them)
- the ability to store grain when the market pays them to do it and moving it when the market signals it needs it
- the ability to use futures and options in their marketing strategies to enhance their returns

By the way – none of this is possible with a CWB single desk.

[silverback]

"... probably sold long ago"????

You and your friends are just hoping that is true.

Feel free to post any of your cwb "proof" that Americans have priced the vast majority of their wheat already.

Maybe you are referring to the domestic durum that was sold , and the imported/exported Canadian durum that they are now profiting on in a huge way?

[Hopperbin]

I am also skeptical about how much the U.S. farmers have sold at lower prices. The CWB claims the rally is because there is no product to sell yet they do not back it up with proof. Canola is climbing high also and there is lots of product being sold at higher prices. What about all these statistical bushels of ending wheat stocks. Should we under estimate U.S. farmers as less educated than we are.

[craig]

Unless there are numbers to indicate the percentage of crop forward sold by the CWB the argument on the amount of crop forward sold by American farmers is irrelevant. Any farmer can do basically do what the CWB does and that is to average price over 12 months. If you would check most market newsletters in Canada you would discover that most are promoting a go slow approach on crop sales this year. I would assume similar services are available in the U.S. Maybe we should make the comment that if we were making another couple of bucks more a bushel for our production we would have incentive to sell more of our crop early. Maybe it should also be stated that the crop the American's sold early might still be higher than we are currently receiving.At the end of the day I take all the risks to produce my crop, I should have the right to sell it at whatever price I choose. If I fail on a regular basis then likely I will be out of business.