CWB 08-09 Feed Bly B pool 'Premium'?

[TOM4CWB]

Dear Charlie,

I see the CWB finally paid $183/t for the 08/09 'B' feed barley at port position. July 23/ 2009 they were saying the pool was at $163/t.

How can anyone... get any relevant market signals from CWB offers?

This system simply distorts our prices, flogs feed barley at massively discounted prices on to the international market... and is nothing but a disruption for everyone in the system!

Who does the CWB 'give' our barley away to? THis is a very bad joke!

So how did the CWB increase the pool value by $20/t after July 2009?

How can any CWB supporter justify this as 'extracting a premium' for our grain?

[charliep]

these questions will have to be answered in the CWB annual report.

I will look for answers to the following?

How big (tonnes) was the actual size of the "B" Pool?

Accounting for all sources of income into the "B" pool including interest earning. Similar comments on the pooling expense side. Someone will have to explain the allocation of revenue between the A and B pool over time.

CWB barley cash sales or the not talked about feed barley cash plus. should be clarification of this in the CWB annual report and how profits (or perhaps losses) are handled.

The answer to my question is open market for feed barley but I have to ask why the CWB doesn't go directly to cash pricing feed barley with a deduction for CWB costs (visible and accounted for).

The highlight of your note is none of the market signals from the export market are fed into the domestic market. If the CWB is cash trading with feed barley sourced from the open market and the benefits from this deposited from these sales in the pricing pools, then farmers need to ask questions. The impact of this this last statement is lower prices in the domestic feed market which represents 80 % of barley consumption.

[TOM4CWB]

Thanks Charlie,

If there ever was a time that the CWB completely messes up market signals... and is doing nothing to help any grain farmer... but distorting the feed market lower in western Canada... IT IS NOW... once again.

What on earth is the CWB marketing feed grains for... when they themselves admit there is virtually no market power or near enough volume to obtain a possible premium with such a CWB small minuscule % of the global trade in feed grains.

[charliep]

What will be interesting in the extra money from the $168/tonne in the Sept. PRO (was $163/tonne) is whether the money is real can be demonstrated in sales revenue or an accounting exercise coming from transfer of revenue, allocation of expenses, valuation of inventory, etc. Perhaps the most important thing is to have CWB feed barley payments/prices be an actual reflection of sales activity.

Perhaps one of the stupidist things the CWB does is the bureaucratic allocation of funds (revenue and expenses) at the end of a year based on 50 year concept of fairness versus moving feed barley straight to commercially based cash plus type program or better cash pricing in line with the guaranteed delivery contracts and a $5/tonne or whatever charge with the excess/deficit handled by the contingency fund.

[charliep]

The final was $183/tonne and Sept. PRO was $168/tonne. Given all sales activities would have been completed by September (including inventory valuation), it becomes obvious the extra $15/tonne was a CWB/operations decision around allocation of revenue or expenses.

[charliep]

From the CWB year end presentation, about 180,000 tonnes. Don't know split but would be surprised if the B pool had 50,000 tonnes in it.

[parsley]

The Grain Growers of Canada, the WCBGA, the WCWGA and the Maltsters etc. should jointly called a PUBLIC ACCOUNTABILITY meeting, Media invited and the CWB is TOLD to attend to answer questions that represent producers. Request facts on sheets from the CWB. Ask Merchant Law Group to be there. Pars

[stubblejumper]

LOL stupidist thing I have ever heard.