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SunTV's Adler on the CWB, Interviews Rolf Penner and others.
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Nice! Cam, Rolf you both provided an
excellent perspective. I especially
loved the wet blanket/security blanket
analogy!
My sense is that it's the averaging of
prices many producers like. It gives the
impression of the guesswork being taken
out.
But for the record, I have to make the
point that ANALYSIS WORKS. There's no
crystal ball of course, but you don't
have to take an average just in order to
not totally screw it up. People exist
that understand this stuff and do a not
bad job of interpreting and responding
to market info and price signals, for
all crops.
www.farmlinksolutions.ca
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now its the boards fault, i thought getting rid of the crow , would assure
all kinds of processing here.
what ever happened to that one.
seem to recall the wheat growers saying that,big freight advantage
and all
you guys could be
right everything will be great with board gone. i will live with what ever
and speaking of crow , ,if surpluses reappear and Americans say we don't want your wheat , and the border closes.
How would you like it done
BBQ ed , fried ?
your in the driver seat now,so when things go wrong its your fault.
at least know who to bitch to
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All winter we have been told of the high wheat prices that US producers were getting. $12 plus wheat at the farm gate. That it was the CWB standing in the way of those prices for western Canadian growers.
But my question is, why is the average US farm gate price for wheat in 2010-11 only $5.65 according to the May 11, 2011 WASDE. US growers have never been saddled with a wheat board, they have years of experience in the free marketing of wheat, and oddles of analysts and advisors. Yet last year the average US farm gate price is no better than the CWB average in spite of record high world wheat prices. WHY?
It takes a lot of $3.00 and $4.00 wheat to average and $12.00 wheat down to $5.65.
"I really hope that the "people exist who understand this stuff" can do better in Canada than they did last year in the US.
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Numbers to go with the above comments.
[URL="http://www.ers.usda.gov/data/wheat/YBtable18.asp"]US average wheat prices[/URL]
US prices are for a June to July crop year. CWB for a August to July with the pooling year more like October to September.
If you look at 2009/10 (last final report), the weighted average price for Canadian farmers was about $4.65/bu versus $4.87/bu for all wheat US and $5.16/bu for spring wheat.
Weighted average durum price for Canadian farmers - $4/bu versus US farmer - $5.47/bu.
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Add in the cost of storing durum from years past because of no sales opportunities in Canada and the weighted average price becomes a hell of a lot less then $4 last year. But I'm sure the board lovers here will have a rebuttal for the pathetic performance of their sacred cow.
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