Where's the Money on Feed Grains Going

[charliep]

Looked at this week's feed pea benchmark and had my blood pressure go.

From this week's benchmark, Alberta feed barley prices that went into the index - $158/tonne (elevator - delivered feedlot/feedmill likely $10/tonne ish higher). Feed wheat $168/tonne. Imoorted corn - $245/tonne.

Saskatchewan feed barley $160/tonne. Feed wheat $175/tonne. Imported corn - $218/tonne

Manitoba. Feed barley - $185/tonne. Feed wheat - $205/tonne. Imported corn $203/tonne.

The declining price reflects the relatively good production on the west side of the prairies and the low production on the east. Having said, I have to repeat the frustration of not having full export prices reflected back to Alberta farmers. It has been highlighted here many times but current export prices are well above current feed barley/wheat PRO values.

The issue for Alberta is the extra money from these export sales is being captured by the CWB and will be redistributed east via price pooling. To add insult to injury, the lack of price signals is resulting in lower prices to the domestic feeding industry in Alberta.

There is no reason why Alberta feed barley and wheat prices shouldn't be $185/tonne ($4/bu barley and $5/bu) to both the domestic and export markets. Manitoba with an 800 mile disadvantage to west coast is there already.

Note how hard everyone fights to keep input costs down but you watch 50 cent plus a bushel price opportunity slide by you in ignorance or not caring.

Most recent not posted yet but can get at:

<a href="http://www.pulse.ab.ca/">prices</a>

[mcfarms]

Had a line company phone and offer us 4.50 for our feed wheat not biting there, If I was a brave soul I could do a FPC at almost 5.50. this aft. Just pondering whether it's worth taking a chance of the spreads not completely screwing me on delivery.
Had a long talk with our FBR yesterday I felt there was an understanding that feed wheat needs to be disconnected from the FPC and priced better/differently or at least have the ability to lock the values on sign up , If I say its feed and it doesn't make specs I would pay a penalty If It is a millable 3 on delivery thats my fault for not sampling properly and knowing what I have. For what its worth my sampling is deadly accurate, I know what I have good bad or ugly and should be able to market it to the best market. This year that market is off shore and I have top use the board that said the board has to honestly reflect values and let us capture them on FPC .

Charlie

Did the introduction of Barley GPC's (not GDC's) not occur mid year could we not see feed wheat GPC's as well?

[charliep]

mcfarms

Hit the nail on the head.

Lots of feed wheat in Alberta. Ability to lock in a fair price and delivery opportunity on any given day.

Not sure on the answer to your last question. Would be a good question for CWB candidates.

[TOM4CWB]

Charlie,

If any CWB director, government official... or WTO investigator wants to open their eyes for a millisecond... they COULD clearly see the CWB is distorting the whole grain complex in western Canada.

For the CWB claim that they are 'commercial' and don't distort markets... the CWB has a fabulous track record of doing the exact opposite!

Like all the high grade durum... that just went into the domestic feed market... and the theft of malt and feed barley year after year... the endless parade of deceptions that Goodale protects are VERY annoying... to say the least!