Protein Question ?

[farmaholic]

"Could also not be paid for cause us
stupid farmers don't ask for it."

I don't know about you Hopper but I
don't believe in the "Gospel according
to Viterra/Patterson/Richardson/etc."

My spring wheat has px in the 16-17%
range, even before we only got paid up
to 15.5%. So, there is no area of the
praries that has lower protein wheat
that the higher px wheat could be
blended with? Even at port? Or no
offshore mills that need some good wheat
to blend up some poorer quality.

I can't wait for the day they grade
wheat on its physical characteristics
(px, bushel weight, falling number) and
throw the visual and other minor
annoyances out the window.

My neighbor said his chickens weren't as
fussy and never picked through it as
hard as the terminals. Ever see them
use a magnifying glass??

[charliep]

For what it is worth, here is the Great Sand Hills terminal protein premium and
discount schedule. The only posted schedule I am aware of although other grain
companies would be very similar from what I am hearing.

[URL="http://www.gst.ca/cwrs_discount_schedule.html"]protein schedule[/URL]

[agchat]

Wd9 no mention of protein in the contract.
Guess what surprises me, a couple days ago a
thread was started on per cent of commodities
sold and some said they have sold. Now when I
ask about protein no one wants to say if they got
a protein premium on the wheat they sold. Had
one guy tell me already not to worry, I will still
make more than selling through the wheat board
even if they pay a premium. Is that the attitude
we should have?

[agchat]

Charliep, thank you very much.

[charliep]

I will note the Northern tier states in the US are not paying premiums on high protein wheat either.

[URL="http://www.ams.usda.gov/mnreports/bl_gr110.txt"]Montana wheat prices[/URL]

Lots of high protein wheat in North America. Spreads have not changed much all fall/early winter.

Will likely to struck dead by lightning, but high protein wheat (14.5 plus) is one crop I might consider storing between crop years (assuming storable).

Most contracts are protein price schedule determined at delivery. Has been this way in the US for years.

[farmaholic]

Charlie: How can they heavily discount
low protein wheat when there is so much
high protein around. So I don't get
paid for my 16.5(average) but some poor
bastard gets penalized over $30 dollars
per tonne for extremely low protein.
Now there's justice for all. At a one
to one ratio, my 16.5 could blend equal
amounts of 10.5 to average 13.5! Yes
and on farm storage is free and doesn't
cost to build bins. Not being
argumentative Charlie just making a
couple of points. Thanks for the info
and input.

[charliep]

I guess it comes down to what your customer needs. To have that nice fluffy loaf of bread in the grocery, a baker needs a high quality/protein spring wheat. There are other markets for lower protein wheat but they compete with mid quality wheats at lower prices. If I look into a crystal ball, I think that areas that produce lower/protein CWRS wheat in the past are likely to switch to CPS/CWRW wheat or heavan forbid, more incentive to grow barley in the future. The pain of not hitting the quality/protein specifications will be greater so the decisions about what crops to grow will be clearer.

One thing that is interesting is to go over the past 10 year CWB final payment protein spreads. There has been extreme variability even under single desk. The only difference in the new world is you have more decision making ability and will see the spreads directly in your prices and not final payments.

[charliep]

On your comment on blending, putting a 16.5 and 11.5 protein doesn't work so well as the other properties of the wheat maybe quite different. You can blend a 13 protein with a 14 to come with 13.5 but not such a good mix to go wider.

Example. You may have 15 plus protein because the crop was slightly drought stress and overall kernel is slightly smaller/protein higher. Your 12.5 minus protein may have had perfect growing conditions and a nice plump kernel. These two samples will vary in terms of kernel plumpness/ability to process as well as other quality characturistics/attributes.

[farmaholic]

Charlie: I agree, the protein premiums
varied during the CWB tenure also and
some years there wasn't much of a
premium either. But I get pissy when I
don't get paid for trying to add value
to what I produce. 60 cent/lb.
nitrogen. I try to put enough on to
ensure a decent chance at average(13.5)
protein, if mother nature enhances or
detracts the chances there is nothing I
can do but I done my part and am not
getting paid. Moral of the story: aim
lower.

[wd9]

So if protein was scarce agchat and you
delivered some 11.7% protein wheat, there
would be no financial impact to you? I
find this almost impossible to believe.