CWB and Barley

[TOM4CWB]

Charlie;

We got sucked into doing 200t of CWB feed barley, because the CWB has recked the feed barley market.

We are told the CWB is selling feed barley to the Saudis for $2.75-3/bu basis Edmonton farm gate... but our domestic feed market won't compete with a pool price that disapears 9 out 0f 10 years, even when the CWB has the money from interest to pay what the PRO promised earlier in the year.

This is disgusting.

So we sold at $2.15/bu, with a hope of a final... on the 90% it stinks plan from the CWB.

When is the AB gov. going to get barley out of the CWB?

[rain]

Tom is this years or last years feed barley?

[TOM4CWB]

This was delivered 2003 1CW Feed Barley into the 2003-04 CWB feed barley pool, 90% PPO option.

[charliep]

Where is the local market price? I checked this last week's Alberta Grain Commission Survey and the Edmonton price was $92 to $106/t ($2 to $2.03/bu). Implication the 90 % EPO is competitive with the local cash market in many regions that don't have a local feed market and you still get a final (I would not plan on but rather treat as a bonus).

Some interesting times ahead for barley. Will do the numbers in the other thread.

[rodbradshaw]

Are grain companies keeping basis wide ($24 in our area)to drive people to CWB and secure tonnage through their facilities?
Secondly if one is in the open market you have to make sure that your customer has the ability to pay.