Agstar77,
You miss the whole point.
If someone had to pay the CWB $500/t to get an export license... there is no way the sale would ever happen to the US.
All that would have happened... is that our carry out in Canada would be higher... and our prices lower next fall as supply would have been greater.
The CWB has this backwards... and so do you Agstar77.
Substitution... at a certain point... drops the market... because at some point folks say they won't pay the higher price... and switch to potato bread... rice cakes... or some other starch product... our demand drys up... and the market drops just like it did!
Being 'Mad' because another grower (perhaps your neighbour)had the forsight to sell at the 'right time' is no different than someone selling Canola @ $17/bu.
The crime is... that another 1mmt of 'designated area' wheat was not sold... at the highest prices in history...
NOW that revenue is gone... the market is gone... and no one got any benefit... including any of the folks in the CWB Pool.
This is why the CWB issues no-cost export licenses... because the volume that leaves Canada... and does not use up CDN 'designated area' shipping capacity... and is graded with a totally different standard... does not change CWB pricing.
Just think Agstar77... 1 million tonnes less carry over... how much higher our domestic prices would have been... in 6 months from now! We know how a small change in ethanol demand for corn... has changed that market...
You miss the whole point.
If someone had to pay the CWB $500/t to get an export license... there is no way the sale would ever happen to the US.
All that would have happened... is that our carry out in Canada would be higher... and our prices lower next fall as supply would have been greater.
The CWB has this backwards... and so do you Agstar77.
Substitution... at a certain point... drops the market... because at some point folks say they won't pay the higher price... and switch to potato bread... rice cakes... or some other starch product... our demand drys up... and the market drops just like it did!
Being 'Mad' because another grower (perhaps your neighbour)had the forsight to sell at the 'right time' is no different than someone selling Canola @ $17/bu.
The crime is... that another 1mmt of 'designated area' wheat was not sold... at the highest prices in history...
NOW that revenue is gone... the market is gone... and no one got any benefit... including any of the folks in the CWB Pool.
This is why the CWB issues no-cost export licenses... because the volume that leaves Canada... and does not use up CDN 'designated area' shipping capacity... and is graded with a totally different standard... does not change CWB pricing.
Just think Agstar77... 1 million tonnes less carry over... how much higher our domestic prices would have been... in 6 months from now! We know how a small change in ethanol demand for corn... has changed that market...
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