Why when the Market Crashes, Do the Elevators phone looking for grain.

[SASKFARMER3]

Yesterday I had numerous calls from Elevator companies looking for grain.
And talking about their new crop prices. Well Well, Peas 8.80 is now good when Pakistan is having problems with their chickpea production HM is this a chance for some major profit by the middle man. March is traditionally your best month, This year Feb soared and March tanked or was it over done. China has trouble now with its northern Wheat crop only 1.8 MM of precipitation this year. What am I missing if the ones who need the food India, Pakistan and China are not having great conditions is the media reports from these places just smoke screens so that on the down they can purchase and build stocks because god knows if these guys ever starved all hell would break out. Now in Western Canada I was from East Sask to Lethbridge just over the weekend. With plus temps this week most of southern Alberta and Sask up to Saskatoon will have no SNOW COVER AT ALL. These areas were dry last year and ND AND MONTANA are dry. Now HRS and Durum is grown in ND Montana Manitoba Alberta and Sask. Is the wheat bubble just starting to gain in size.
To me it looks like runnoff will be very low in most areas except north of Saskatoon.

[SASKFARMER3]

Disturbing dryness in Australia: Drier conditions in Australia this past month were not welcome. More rainfall is still needed to replenish soil profiles, following a severe drought last season that decimated wheat production. Wheat areas requiring more rain include Western Australia, South Australia and Victoria.

[Jay-mo]

Yesterday the local Viterra calls offering to buy barley through the recent cwb program 4.25 initial with possible final payment. Called back later to sell some and was too late as the cwb apparently sold 55,000t in a day.....
Today barley is up 6.50 on the near month.....hmmm glad i was too late....hehe

[charliep]

How much information was provided on the feed barley deal. Can't find an fpc value but will note the CWB is offering epo. A 90 % EPO provides an initial payment of $246/tonne port or an Alberta value of $190/tonne - not quite $4.25/bu but close with a small premium at least in Alberta. You are likely to have a look at another 50 to 75 cents/bu final.

http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/epo/epo-barley-2007-period2-20080311.html

I guess we have a look at the first cashplus for feed barley.

[charliep]

The termination announcement is on the website.

GDC feed barley Offer 5, Pool B terminated

Contracts sign-up for GDC feed barley Offer 5 (Pool B) has been terminated as of 4:00 p.m. CT on Monday, March 10, 2008.

[Jay-mo]

What Charlie just said