National Post- Wheat Board may have cost growers billions

[chaffmeister]

Here's one to make you go HMMMMMM.....

Someone at the CWB decided to stop selling at some point so the CWB carry out stocks are reported to be 3.9 mmt. (I think this is high considering we were looking at one of the biggest inverses in recent memory - every pound should have been sold.)

If average prices drop $100/tonne (a mere $2.72/bu) and the CWB selling prices drop the same (why wouldn't they - the PRO is already $30 lower), then you're looking at another $200 million in lost opportunity (I'm being easy on them here - I'm assuming they could have easily sold another 2 mmt, not the whole 3.9 mmt.)

[Burbert]

Hindsight is always perfect. Way to go, free marketeers, you really know what is best for all of us, studying the results. Killing the Crow was really a good thing wasn't it. As the cow guys, cheap feed is the order of the day, isn't it??

[Fransisco]

When you look back through history the CWB does have a "perfect" record. It keeps coming in below average. Whats the definition of insanity? Doing the same thing over and over again and expecting different results.

[TOM4CWB]

Burbert,

Who do you work for?

DUMB QuESTION... I KNOW!

You said:

"Hindsight is always perfect."

The CWB has done this very same stategy... year after year... costing us each year... and we who actually must use their services are frankly sick of the bad decisions... and expensive services.

[charliep]

CWB response posted.

http://www.cwb.ca/public/en/newsroom/releases/2008/080808.jsp

Encourage all the read the study. You have the ability to reach your own conclusions based on the information presented.

http://www1.agric.gov.ab.ca/$Department/deptdocs.nsf/all/agc6751/$FILE/informafinalreport.pdf

From there, encourage everyone to ask for the CWB to provide the same level of transparency starting with the $560 mln benefit over what US farmers received according to the 2007/08 year end presentation.

[parsley]

I will be particularly interested to see just if ONE Board supporter on Agv can find one single thing in the CWB response which may be considered as "brown hairy hogwash" and actually post it.

Parsley

[chaffmeister]

CWB Message Management 101:

In a July 31 News Release the CWB stated the following about COMPARING CWB RETURNS TO US PRICES:

<b>The largest proportion of U.S. farmers reportedly sold their wheat at $6 to $7 per bushel, well before the dramatic price spike of early 2008. By comparison, western Canadian pooled returns were about $8.50 per bushel for spring wheat and $12.35 for durum.</b>

In an Aug 8th News Release, the CWB points to various flaws in the Informa Study including the following "flaw" about COMPARING CWB RETURNS TO US PRICES:

<b>Comparisons to U.S. elevator prices, which are based on a different set of market factors than Canadian wheat returns.</b>


Basic premise: When you can present something in your favour, run with it. When its used to work against you, refute it.


And that my friends is why getting this stuff to stick to the CWB is like nailing Jell-O to the wall.

[parsley]

Perhaps. They will not admit.

But at the end, we will have a Board with very noticeable willnots.

Parsley

[wilagro]

charliep: Good response from the CWB re: the Informa final report. Nice to see that Mr. White is on the ball.

[Fransisco]

The CWB response looks more like a drive by smear than anything else. First off they call it an "Alberta Report", its not, it was done by Informa,and paid for by Alberta Ag, there is a difference.

And I got a good laugh out of this line of non reasoning,

"Comparisons to U.S. elevator prices, which are based on a different set of market factors than Canadian wheat returns. American wheat has an intrinsic price advantage due to factors such as the dramatically lower proportion exported from the U.S. (40 per cent compared to 80 per cent in Canada). This means less U.S. grain is sold into diverse markets outside North America where prices tend to be lower and transportation logistics more expensive."

Is anyone(other than Willagro) really going to believe this bunk?

I mean come on, the US elevator price is the world price backed off to that elevators location. Even if they didn't export a bushel it would be a reflection of the world price, because if it wouldn't they'd be swamped with cheaper imported wheat.

If the board wants to try and smear Informa by claiming that it "misused data" to reach " false conclusions"its going to have to back it up with some actual substance. Denying reality and substituting their own ain't gonna cut it.