I see in this weeks Western Producer the headline "BRAZIL BUYS CANADIAN WHEAT".
The bottom of the article reads as follows:
But the buyer,Grande Moinho Cearense, said it paid $200 US a tonne f.o.b.,which was higher than the amount the broker had claimed.
Canadian Wheat Board spokesperson Maureen Fitzhenry said the claim of a discounted sale was wrong.
"He was not involved with the sale and has no knowledge of what those prices were",said Fitzhenry.
"I can assure everyone that the wheat board is selling into Brazil at premium prices."
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Hmm, a story runs in Brazil only, about a great discounted wheat buy, but through the magic of google, this info comes back to Canada pretty quick, and is made public on the great forum. In the meantime I'm sure a call was made to explain the finer points of buying from the CWB, chiefly if you want to keep buying at a discount, don't reveal the true price, just say "you paid a premium price" and leave it at that, got it.
The funny thing is though that the price he revealed ($200/t US)was still at a $10t discount to the then current market price ($222/t)or more depending upon whether that $222 was in $US or $ Cdn and not even mentioning that wheat has rallied $.75/bu since this sale.
CWB definition of "Premium"
Any price which is higher than the very first lowball bid offered buy a buyer.
The bottom of the article reads as follows:
But the buyer,Grande Moinho Cearense, said it paid $200 US a tonne f.o.b.,which was higher than the amount the broker had claimed.
Canadian Wheat Board spokesperson Maureen Fitzhenry said the claim of a discounted sale was wrong.
"He was not involved with the sale and has no knowledge of what those prices were",said Fitzhenry.
"I can assure everyone that the wheat board is selling into Brazil at premium prices."
-------------------------------------
Hmm, a story runs in Brazil only, about a great discounted wheat buy, but through the magic of google, this info comes back to Canada pretty quick, and is made public on the great forum. In the meantime I'm sure a call was made to explain the finer points of buying from the CWB, chiefly if you want to keep buying at a discount, don't reveal the true price, just say "you paid a premium price" and leave it at that, got it.
The funny thing is though that the price he revealed ($200/t US)was still at a $10t discount to the then current market price ($222/t)or more depending upon whether that $222 was in $US or $ Cdn and not even mentioning that wheat has rallied $.75/bu since this sale.
CWB definition of "Premium"
Any price which is higher than the very first lowball bid offered buy a buyer.
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