Charlie,
I just read this;
"The CWB’s 2007-08 export target includes 10.9 million tonnes of wheat, 3.1 million tonnes of durum and three million tonnes of barley.
Fifty-one per cent of the program was exported by December 31, 2007, with 90 per cent targeted for export by the end of May 2008."
http://www.cwb.ca/public/en/newsroom/releases/2008/011608.jsp
What happened to selling 1/12th of the crop... each month... from October 07 to October 08... the whole 07-08 physical wht/bly. pool marketing period?
If we end up with short US wht supply... does this mean the CWB is sold out already...?
Are they playing the futures? For what % are they... taking what position?
Background:
Newsroom
2008
CWB marketing strategy for 2007-08 focused on record prices
January 16, 2008
Winnipeg – The CWB will export 17 million tonnes of wheat, durum and barley this crop year, focusing its marketing strategy to take full advantage of current record-high prices for grain in the international marketplace.
“The CWB is maximizing returns through aggressive sales at current high values prior to new-crop arrival,” Chief Operating Officer Ward Weisensel says in the CWB’s annual Grain Marketing Report, mailed to farmers this week and available at www.cwb.ca. He encouraged farmers to commit their remaining wheat tonnage to Series B before the January 31 sign-up deadline.
The CWB projects farmers in Saskatchewan will receive about $268 per tonne of top-quality spring wheat, an increase of 77 per cent over last year; $417 for durum wheat, up 144 per cent from last year; and and $223 for malting barley, an increase of 59 per cent from 2006-07. An updated projection will be released on January 24.
The CWB’s 2007-08 export target includes 10.9 million tonnes of wheat, 3.1 million tonnes of durum and three million tonnes of barley. Fifty-one per cent of the program was exported by December 31, 2007, with 90 per cent targeted for export by the end of May 2008. “Given this situation, we will need to have consistent delivery through the winter months and into spring,” Weisensel says.
The current export target is 1.5 mllion tonnes below last year’s exports, but close to the five-year average of 17.7 million tonnes. Western Canada produced a smaller-than-average crop in 2007. Wheat seeded acres hit their lowest level in 30 years, largely due to a wet spring that forced farmers in central and northern growing regions to turn to shorter-season crops.
Overall, the 2007 harvest – while above average – was lower quality than 2006, Weisensel says. A hot, dry July and cool, wet harvest conditions in much of the Prairies reduced yields in some areas and affected quality in others. The crop year began on August 1, 2007 with the tightest stocks in 25 years. Tight global supply drove prices to record levels, with demand continuing to support high prices.
The Grain Marketing Report also notes that the strong Canadian dollar has tempered farmer returns since wheat is traded on a U.S.-dollar basis. If the exchange rate was still at 2002-03 values, Prairie farmers would have seen additional returns of about $135 per tonne (in store Vancouver or St. Lawrence). Record-high ocean freight rates have also taken a bite from farmer returns, with the per-tonne bulk rate nearly quadrupling over the past two years.
CWB Producer Payment Options (PPOs) continue to grow in popularity among farmers, the report states. As of mid-November 2007, the number of producers using Fixed Price, Basis Payment or Daily Price contracts or the Early Payment Option had reached a record 22,938. The grain committed under a PPO comprised about 24 per cent of total production.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.
--30--
For more information:
Maureen Fitzhenry,
CWB media relations manager
(204) 983-3101
Cell: (204) 227-6927
maureen_fitzhenry@cwb.ca
I just read this;
"The CWB’s 2007-08 export target includes 10.9 million tonnes of wheat, 3.1 million tonnes of durum and three million tonnes of barley.
Fifty-one per cent of the program was exported by December 31, 2007, with 90 per cent targeted for export by the end of May 2008."
http://www.cwb.ca/public/en/newsroom/releases/2008/011608.jsp
What happened to selling 1/12th of the crop... each month... from October 07 to October 08... the whole 07-08 physical wht/bly. pool marketing period?
If we end up with short US wht supply... does this mean the CWB is sold out already...?
Are they playing the futures? For what % are they... taking what position?
Background:
Newsroom
2008
CWB marketing strategy for 2007-08 focused on record prices
January 16, 2008
Winnipeg – The CWB will export 17 million tonnes of wheat, durum and barley this crop year, focusing its marketing strategy to take full advantage of current record-high prices for grain in the international marketplace.
“The CWB is maximizing returns through aggressive sales at current high values prior to new-crop arrival,” Chief Operating Officer Ward Weisensel says in the CWB’s annual Grain Marketing Report, mailed to farmers this week and available at www.cwb.ca. He encouraged farmers to commit their remaining wheat tonnage to Series B before the January 31 sign-up deadline.
The CWB projects farmers in Saskatchewan will receive about $268 per tonne of top-quality spring wheat, an increase of 77 per cent over last year; $417 for durum wheat, up 144 per cent from last year; and and $223 for malting barley, an increase of 59 per cent from 2006-07. An updated projection will be released on January 24.
The CWB’s 2007-08 export target includes 10.9 million tonnes of wheat, 3.1 million tonnes of durum and three million tonnes of barley. Fifty-one per cent of the program was exported by December 31, 2007, with 90 per cent targeted for export by the end of May 2008. “Given this situation, we will need to have consistent delivery through the winter months and into spring,” Weisensel says.
The current export target is 1.5 mllion tonnes below last year’s exports, but close to the five-year average of 17.7 million tonnes. Western Canada produced a smaller-than-average crop in 2007. Wheat seeded acres hit their lowest level in 30 years, largely due to a wet spring that forced farmers in central and northern growing regions to turn to shorter-season crops.
Overall, the 2007 harvest – while above average – was lower quality than 2006, Weisensel says. A hot, dry July and cool, wet harvest conditions in much of the Prairies reduced yields in some areas and affected quality in others. The crop year began on August 1, 2007 with the tightest stocks in 25 years. Tight global supply drove prices to record levels, with demand continuing to support high prices.
The Grain Marketing Report also notes that the strong Canadian dollar has tempered farmer returns since wheat is traded on a U.S.-dollar basis. If the exchange rate was still at 2002-03 values, Prairie farmers would have seen additional returns of about $135 per tonne (in store Vancouver or St. Lawrence). Record-high ocean freight rates have also taken a bite from farmer returns, with the per-tonne bulk rate nearly quadrupling over the past two years.
CWB Producer Payment Options (PPOs) continue to grow in popularity among farmers, the report states. As of mid-November 2007, the number of producers using Fixed Price, Basis Payment or Daily Price contracts or the Early Payment Option had reached a record 22,938. The grain committed under a PPO comprised about 24 per cent of total production.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.
--30--
For more information:
Maureen Fitzhenry,
CWB media relations manager
(204) 983-3101
Cell: (204) 227-6927
maureen_fitzhenry@cwb.ca
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