CWB frees up malt barley

[wd9]

OK fresh of the preses!! CWB releases barley to maltsters and industry partners to forward contract after Aug 1, 2008
YIPPY!! they admit they have been holding the maltsters and grain trade hostage (and farmers) for not allowing them to forward contract malt barley after aug 1!
oh but wait!!!! the kicker is you have to either contract the barley through the traditional malt barley pool or the new fantastic CashPlus program!!
Frig? there is nothing new here, come now, you fully admit you are screwing farmers and the industry over new crop sales, and still the only way you will allow us to make any sales is to go through the CWB.
What a downer, there goes my intentions of seeding malt, Hail Canola!!!
Erik





CWB confirms malting barley is available from pool

January 24, 2008

Winnipeg - The CWB has confirmed that it will offer forward sales contracts from the malting barley pool to interested maltsters and other customers, in addition to its innovative new CashPlus program for producers.

"We continue to encourage the industry to offer contracts to barley farmers under CashPlus," CWB president and CEO Greg Arason said. "Cash-buying discussions will continue because we believe many farmers would prefer the upfront certainty of a cash-pricing option. We will also facilitate sales to those maltsters that decide to accept deliveries from farmers who choose pooling."

In 2008-09, the CWB will sell under normal contract conditions for shipment prior to December 31, 2008. Prices for pre-harvest sales with shipment periods past January 1, 2009 will include a risk premium to ensure the pool attracts deliveries from farmers and that pool participants are not disadvantaged.

Arason said discussions with the industry over the past few months centred on the ability of the CashPlus program to deal with upheaval and uncertainty for farmers and the industry, such as what occurred last year after the federal government announced its intention to create an open barley market.

"This regulatory and legislative uncertainty continues this year, which makes forward pool sales risky, Pool Return Outlook forecasting more difficult and adds risk to Producer Payment Options," Arason said.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based company sells grain to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.

-30-

For more information, please contact:

Maureen Fitzhenry
CWB media relations manager

[SASKFARMER3]

Once burnt never again I am done with Malt Barley.
Dropping my usual 480 acres.

[parsley]

Well what about this?


From the gossip:

The CWB went to the trade/cash market and bought a pile of barley.

Sold for $65.00/tonne more than bought from farmers.

So, uh...where does the cash from the sale go?

[chaffmeister]

Parsley:

Don't forget about the "kiss" the CWB got from the trade on open market sales.

On the 800,000 tonnes (or so) of "open market" feed barley that was traded before the court ruling, the trade agreed with the CWB that, if the CWB retained its single desk, the exporters would pay the CWB $4/tonne just to allow the grain companies to complete the sales as if it was non-CWB. The ruling went in favour of the CWB and it picked up about $3.2 million - for doing nothing.

Where does that money go?

And the $65 dollar question of Parsley's. I've heard the same rumour - just don't know how much barley we're talking about here. But let's say it's 100,000 tonnes. Where does the CWB stuff $6.5 million that isn't attached to a pool?

I'm not that good at math but I think we're talking about roughly $10 million.

Were'd it go?

Don't forget this stuff. The CWB will have to explain sooner or later.

[craig]

I'm tired of being a second rate citizen in the eyes of the CWB. How many times do we see the reference of protecting those in the pool accounts. If I participate in PPO's or in Cash Plus I am expected to carry all the risk of the transaction because the CWB makes dam sure they have their butts protected. Then this overage magically becomes the property of the CWB and can be used to support and cushion their friends. As long as these producer options are tied to the pool accounts they are nothing more than a glorified EPO. In every situation the CWB solution is a compromise slanted in favour of their friends. I want the ability to manage my risk on the farm just as the malster wants the ability to manage his. Simple business concept. Problem is it seems they forgot to teach business at the CWB.

[charliep]

It would appear the CWB has gone back to the ability to short the market without providing maltsters a firm supply agreement or farmers a fully transparent price signal. Will note maltsters and the CWB are the only ones negotiating in this process with price the only factor up for discussion. Farmers will accept whatever is agreed to if they want to grow and sell malt barley.

[HFL]

We are done with malt barley on our farm.

[charliep]

With regards to producer pricing options and the contingency fund.

Farmers will finally get an accounting for activities in the 2006/07 crop year when the annual report is released in February.

We're in the middle of the 2007/08 crop year for the highest signup in producer pricing options ever and a market that would challenges any risk management strategy. What checks and balances are in place to monitor the CWB strategy and processes? You as a farmer participant/shareholder will not see the results of this for a year (2007/08 annual report) and only what the CWB tells you.

Finally, producer pricing options are started to be offered for 2008/09 but without basis attached.

[craig]

Charlie
You make some interesting comments. If we only know what the CWB tells us how can we have any confidence that money isn't being shifted around within the board. An audited accounting statement doesn't give me great faith either because the accountants are also only operating on what they are provided.It's interesting that the board has wide basis to protect their perceived risk but if that risk is not realized you would assume huge surplus in the contingency fund. I would suggest that the criteria they use would give a much higher probability of surplus than deficeit.I would also suggest they have wiggle room as there are so many factors that impact prices.Wanting to know who covers my risk factor when they( CWB) does a poor job selling my grain.

[chaffmeister]

Greg Arason says, about CashPlus: “…we believe many farmers would prefer the upfront certainty of a cash-pricing option.”

Do the people at the CWB actually believe this stuff?!

How is CashPlus any different than the pool?

Either way, you get a guaranteed price upfront (“Guaranteed Farm Price” or “Initial Payment”).
Either way, the payment you get upfront is only a portion of the market value of the barley.
Either way, you get an undetermined amount paid long after the fact (“Dividend” or “Final Payment”).

Note to Greg: Either way, farmers do NOT have upfront certainty. This is not a cash-pricing option.


The only difference between these two is that the upfront CashPlus price will change and the Initial Payment doesn’t.

And this is good, becaaaauuse……

[chaffmeister]

Someone help me here - does this make sense?


Barley Production and Management for Profit Workshop set Jan. 28

The North Dakota State University Institute of Barley and Malt Sciences (IBMS) will hold its first Barley Production and Management for Profit Workshop on Monday, Jan. 28 at the Holiday Inn in Minot.

Bob Cuthbert, Canadian Wheat Board senior marketing manager, will begin the day speaking about the malting barley world marketing situation.

end quote

What benefit to Western Canadian farmers does this provide?

[cropduster]

Don`t they call that TV program JACKASS????????????

[mcfarms]

was waiting for someone to pick up on that Chaff