During the 06/07 crop year, I grew 125 acres of CPS Red. This was the first time I bothered to take the time to understand just one CWB program. Using the FPC, I locked 20 MT.($0.69/bu discount) up in April 2006 before I seeded, 40 Mt in July ($0.59/bu discount). On a homebuilt spreadsheet, every day I followed the Kansas price/CWB discounts and PRO's from April 3 throughout the summer. Every time I entered the CWB discount, I got mad. My decision in July to book 40 Mt. rather than my plan to do 20 Mt. contracts was based on the fact that the US price went up and the CWB discount went down. Usually, the higher the US price the larger the discount grew. I MADE THE MISTAKE OF TRYING TO FIGURE OUT WHAT THE HELL THE CWB WAS UP TO. If I hadn't done that I would have kept to my plan and been better off as the price increased after I did the 40 Mt. In September/November, I delivered on my contracts and held the rest of my production (45%)and sold it as FEED WHEAT the following June. 16 months after booking my first FPC, the Final payment came out at $3.55 versus my weighted return of $3.63. Where was the CWB benefit? I made more than the pool even though I sold 45% of my milling wheat as feed, second guessed my plan because I tried to figure out what the CWB was up to, lost $0.69/$0.59 in discounts, got my money 14/12 & 6 months earlier. I can only imagine how PO'd larger growers must be when they see the $ lost. I haven't grown another board grain until this year and am now trying my hand at a basis contract for the first time. Watching the US market is one thing but trying to figure out what the CWB is up to unnecessarily adds another variable into the mix.
Announcement
Collapse
No announcement yet.
CWB single desk status safe for now says FAS
Collapse
Logging in...
Welcome to Agriville! You need to login to post messages in the Agriville chat forums. Please login below.
X
-
Excellent by what measure? Historical or compared to what other farmers in the world were getting?
Historically yes we saw some all time highs this past year. The problem is that it was still less than the world price.
It's not just about beating your own best prices we have to do as good or better than the other guys.
You can try to pretend the rest of the world doesn't exist but that doesn't make it go away.
Comment
-
timm,
How do you know what prices I did or didn't miss out on?
How can anyone stand against a grower... who actively found a market for their wheat... at $22/bu... but had to send over $10/bu to the CWB to get 'permission' to ship their own grain?
WHO does the CWB work for... you Timm?
Why did you need over $10/bu out of my pocket... what makes you deserve this reward?
Perhaps I can come over with a bulk tank... and fill it with diesel because of the loss you caused me?
When can I come?
Comment
-
timm,
JUSt think for one second...
Why WAS the price $22/bu?
Because our system in Canada is BROKEN... and there was NO WAY around it!
So what good did it do... to have farm gate prices at $22/bu in the US...?
The rest of the world... saw it. SURPRISE SURPRISE... just like the big spike in 96... huge wheat production... years to overcome the shock.
80mmt extra wheat.
There was wheat and rice planted in the most obscure unlikely places...
AND WHAT GOOD HAS it done grin growers in the 'designated area" Timm?
For how many years will we pay... again just like 1996... for the stupidity of not back filling the market when it screemed for our wheat!
How stupid can we be?
We are supposed to learn from our mistakes... not make worse ones going forward!
If CDN wheat HAD been allowed to backfill the shortage in the US... would wheat have ever got over $10/bu?
I doubt it!
What would have been s bad about that timm?
$10/bu not enough for you Mr. Timm?
SO we will settle for $5/bu NOW?
Answer my question... when can I come and 'share' some of your fert and fuel... "pool' a little... for the damages you approve of... and the money you took from our farm last spring?
Comment
-
Timm, the DPC prices were not available to most farmers because the limited contracts were sold out in an hour and a half. So yes, a price was posted but most farmers weren't able to get contracts. Now the DPCs are gone and replaced with a new contract that trails the market badly. Thanks a lot for failing to mention that.
And for the "good" FPC prices that were available in February, the US farmers had a much wider pricing window to sell their wheat at high prices, not just a few weeks in Feb.
Finally, the idea that Cdn wheat would swamp the US market is hilarious. The US exports 60% of their spring wheat. That means that the $22 wheat was being shipped out the west coast and sold around the world. That's something the CWB should have been doing too.
Comment
- Reply to this Thread
- Return to Topic List
Comment