Why aren't initial prices moving up for Hrs

[SASKFARMER3]

Here we go again increase for Barley by the CWB and no mention of one for HRS. Did they give away our best and highest protein HRS for pennies to the Saudis as was mentioned months earlier. Or is their Govt BS going on as to not at least trickle some pennies forward to the poor peasants that farm in Western Canada.

[ry0972]

I think for the CWB to have even a slight chance of getting production down to what they can sell they should drop the PRO on HRS by about $2.50/bus. Durum should be $0.10 /bushel NET for next year.
The only chance They have to get a "premium" for farmers is to limit Canadian production to 90% of what they think they can sell.
A contract system in the spring to sign up the tonnes needed to cover expected sales is also needed.
If farmers want to grow more than they contract for they would have to store it and contract it out on future years.

[Choice2U]

No smart farmer puts any value in the PRO so why do you think putting a $2.50 or $0.10 price would have any significant effect. If we knew the mandate of the CWB ie. maximize $/bu or sell all production, then the PRO may become a little more useful. Better yet, give us choice to deal with whomever so we can plan for price, delivery, cash flow, etc. Supporters, please don't tell me that a FPC gives me choice because in most years the CWB skims profits off of those using that program to subsidize the pool (unless hypothetically they make a blunder and then they just recoup it over a number of years...oh wait....that actually happened).

[Choice2U]

The 90% contracting thing is a great idea for a monopoly CWB because it would even muzzle dissidents even more. CWB offers to take X tonnes over the year, farmers come in hand with 1.5 x X tonnes looking for a contract. CWB picks their supporters first and then the fence sitters and so on. Vocal non-supporters get nothing, can't sell any of their production other than to the feed market because they live in the designated area, don't get a vote in the next election because they quit growing wheat. The CWB could put in a first come lottery to make it "fair" but that concept fell flat on its face once already.

[Koldkanuck]

The CWB just playing games again. Piss off the farmers into growing less wheat. Piss off the farmers so they haul the wheat into the feed market as they know farmers need money. Have a token interm payment at a critical time, maybe at seeding, make it look like they are really looking after you. Give you a final payment 18 months later, and say the CWB returned a higher price. Fool me once, shame on you. Fool me twice, shame on me.

[bucket]

Do you remember the loss on discretionary trading?

The fund has been repaid and that didn't just magically appear.

Besides in a time where all other prices are tanking doesn't that cwb blanket make you feel all warm and fuzzy and broke? wink wink nudge nudge.

[charliep]

Current CWRS initial payments are somewhere in the range of 75 to 80 percent of the CWB PRO so not a lot of room (at least I suspect from the CWB and the federal government side). My memory could be faulty but it seems as if the target is to have your adjusted initial payment at 80 % or so of the forecast final.

On thing that would be nice would be to give higher grade/protein CWRS an increase to bring initial payment spreads back into line with the PRO forecasts (which I assume are market based). Everyone should be making sure they deliver mid grade/low protein against their fixed payment contracts (lock in the spread) and leave high protein wheat in the pool.

[katoe]

The fpc does give you an option to use if you so desire. Last march you could have locked in cwrs at 7.85 bu. but you were probably finding too much wrong with the program to act.IMHO.

[charliep]

Will agree on your comment on using CWB programs. the $6.85/bu was only available for about one day (converted futures $300 with a $50/tonne CWB deductions). If you want to go the high and the best basis $25 over, a farmer had a chance at $7.50/bu.

I have to express frustation on the latter comment about using the programs wothout question and perhaps suggesting they are a privelege the CWB grants some farmers. Will note that in 2009/10, CWRS basis levels have varied from $15 under to $25 with absolutely no relationship to the market. Whatever relationship there is in place, it is for the CWB board of directors to allocate funds and for the operations side to manage risk. Have to comment on frustration in the 2008/09 annual report where PPO wider basis was use to transfer money back to the pricing pools (one year out of sync) and to bring the contingency fund back into the black.

[charliep]

[URL="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/2009-10/2009-10fpcbpccharts.pdf"]historical pricing[/URL]

See graphs 6 and 13.