CWB MONOPOLY...Barley prices in Chaos

[TOM4CWB]

Charlie;

At the Western Barley Growers we learned some interesting Facts about CWB pricing…

1.Select Barley buyers would desperately like to contract fall 2003 Select 2 Row Barley production contract, at $235/t Alberta farm gate price…Buyers cannot because of the CWB. A similar contract is being offered in the PNW now.

Just think of how badly this distorts market signals to farmers this spring… Crop Insurance indicates our barley is worth $130/t… when, If, we could direct contract, we could lock in $235/t … including a bad weather clause if our barley doesn’t make the spec’s spelled out in our spring contract, we are able to sell to the feed market with no penalty.

2.The Domestic 2 row Special Select Barley(SS Bly) CWB card price the CWB was charging was $310/t Formula Domestic Port price, Feb 12… yet what will farmers get? I understand that if we are selling to the domestic Market, about $240/t port price… but SS BLY for export through the CWB… about $210/t… What a deal.

So it ends up that, the way the CWB works the monopoly today… total chaos is in all of price signals, and because of this everyone looses…

the domestic livestock producers… because fall of 2003 barley prices are totally distorted by the CWB monopoly… Barley will not be planted… just as it was not in 2002… Corn must come in…

My farm grew 34bu/ac Barley, in 2002.. and 14bu/ac CWRS… it is obvious some of the newer barley varieties are much more drought resistant than wheat…

Mean while… back at the CWB… they have created the situation where we now have SS Bly coming from the EU and US this year… while our SS Bly is being fed as livestock feed.

US or EU growers get the extra premium, then the railroads and transportation system gets the rest, while we continue to ship to offshore SS Bly markets… at the cost of huge discounts for all “designated area” grain growers, and tremendous extra cost to our domestic value adding industry.

The power of the CWB “single desk monopoly” at work… I am simply in awe!!!

When is the Alberta government going to free us from the monopoly Charlie?

[parsley]

Damn right they should go to jail, tom4CWB. These guys have been claiming you have to do a buyback to get an export license. You don't.

Next thing they'll be claiming you have to bring them three white goats to get a license, or maybe a week in a condo in Hawaii to get a license.

They have to be accountable for what they are telling farmers. Jail is fine with me.

Parsley

[TOM4CWB]

Parsley;

YOU ARE BACK!

Good to hear from you!

The crazy part is, even on the front of the Jerusalem paper... the CWB being responsible for putting their own Western Canadian farmers in Jail... ...made front page news...

The CWB is now a detriment to western Canadian farmers wheat and barley prices... as distrust world wide has come from this CWB monopoly, that doesn't even exist... that is responsible for jailing farmers.

The Monopoly appears to assure only one thing now... the lowest grain price is the law of Ministers Goodale, and Vanclief...

The true legacy for them and Prime Minister Jean Chretien...

Known as the Ministers who threw a CWB farmer Director in jail for 23 days for donating a sack of wheat to a 4-H club in Montana!

Are these guys smart... or What?

[rain]

Tom where did you get the idea that in 2002 there was less barley seeded. There may have been less harvested but I know there was not less seeded.

For the current year coming most producers are leaning to Barley, thinking last years crop insurance then HRSW and canola dead last. All of this is based on last years crop insurance, and yields. This years crop insurance will be the deciding factor in what gets seeded.

[charliep]

Tom4cwb

The strategy is to put forward a request for a test market in Alberta in which Alberta farmers have market choice for wheat and barley which includes the CWB as an alternative. We were both at the meeting and heard the potential next steps (assuming this is not successfull). You can talk about this if you want.

Rain - You are scaring me indicating that crop insurance price will be the major driving factor this spring. Crop insurance prices are one indication but reflect the market thinking during the early winter. As soon as this process is over, market outlooks change. Crop rotations, soil moisture, value chain relations with buyers, cost of production, commercially available pricing opportunties, etc.,etc. should be the deciding factors deciding crops this spring.

[charliep]

I don't understand the process either.

What were the terms of the contract? Were these terms explained at the time of sign up?

[rain]

Charlie we saw it last year. Just the start of farming for policy. The two main influences on seeding this spring will be weather and crop insurance in Alberta. Price outlook will be dead last as far as most producers are concerned in Alberta.

Agriville should set up a pre seeding seeding intentions page, or even ask the question according to importance the decideing influences on what is to be seeded. Let respondents answer in according to important influences in seeding decisions.

1/Weather
2/Crop Insurance
3/Market Outlook
4/Agronomics

Have respondents state what Province they are from.

Have producers rank these four questions in importance of influence.

[TOM4CWB]

Charlie;

I see this on DTN;

2003 U.S. Barley Acres Seen Higher 02/07
DTN Commodities Editor
Mike McGinnis

...I will quote just a few points in the story...

“DES MOINES -- With U.S. and Canada having short barley crops last year, U.S. maltsters looking to refill their malting-barley supplies could spark an increase in barley acres in the Upper Midwest.
With the tightness of last year's drought-reduced supply, Cargill has been offering North Dakota farmers barley contracts for this coming growing season at $2.90-$3.20 per bushel. For some malting barley varieties, that is more than $1 above last year's contract price. "Because of the tight malting barley supply, contract prices are increasing significantly in 2003," John Zietz, Cargill's malt-barley supply chain manager, was quoted recently in a North Dakota newspaper.
…This combination of short crops outside the U.S. is creating an interest in maltsters like Cargill, Anheuser-Busch and Froedtert Malt to encourage a more stable barley acreage within the U.S. -- not just this year but in years to come.”
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Looks to me like the CWB "designated area" is not even in the running..., JUST HOW MUCH Has/Will THIS COST US?

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[TOM4CWB]

Charlie;

THe terms of the contract are that the CWB can do anything it wants on the grade spreads... at time of setting the futures, and on the initial price spreads it creates throughout the year...

It stinks that the CWB is spending our money... mega media time and with our money... along with producer "accountability meetings" promoting a scam close to the level of Quebec Telemarketing schemes...

I think I will call fraud busters...

[wilagro]

I don't know why you guys don't run for election as CWB directors. THEN you could run it the way you want it to run.