Reflecting on price and protein premiums received by farmers from the single desk CWB

[malleefarmer]

Grain companies are not marketers they are margin traders and if they make a margin they sell.

and farmer should do the same see a good price sell don't worry if its higher tomorrow if it fits your business sell.

standard practice here on any given day basis strong sell cash basis weak sell futures/swaps not rocket science if you don't like either stand aside

[grassfarmer]

Macdon - that bush / Clinton pic says soooo much .

You'll like this one too then - proving nothing's changed.

[Kinger]

Once of the single most fool hardy things a farmer can do is look at what he priced at in years prior. Every marketing year is different in futures, basis, protein, quality, etc. You need to sit down and figure out even roughly what your breakeven is and plan sales from there.

Yeah we probably are not going to get back up to $12/bu this year but if you know your breakeven and know what return you want be it $50, $75, or $100 per acre plan and make contract accordingly.

Oh and thinking that graincos are stealing an extra $1.00/bu is stupid, look how many of them are going through reorganization and restructuring. It ain't because they are rolling in cash.

[farming101]

I agree Kinger. If you don't watch where you're going it's not going to end well

[Guest]

I remember the CWB deductions being about $60/tonne on wheat on our cheques. I can honestly say I don't know or remember if we were getting all the "port" price less the cheque deductions. And then the odd time they said the government guarantee had to bail out the pools?

I guess some would say they are undoubtedly better off in the new system, moving as much as they want when they want (not totally true) and hopefully capturing the market peaks instead of having to take a pooled average. Before it was just shopping it around for the best grade, now its grade and price.

I don't think opening it up was the worst thing to do.....I just would have liked to see a smoother transition. ...not blow open the flood gates and let her go! Checks and balances.

agreed , or dual marketing would've been good too

[blackpowder]

Of course Mallee, without the burden of a particular history, makes the most sense on here.

[vvalk]

Just take a minute and think about it. It's the exact opposite. The CWB only had a monopoly against farmers. They had absolute right to buy the grain from farmers in Canada. What makes you think they had any sort of monopoly on selling grain to the world? They had like 15% market share on wheat and only cwrs and no other wheat. they would even force cwrs into non cwrs markets. Please enlighten me how I have this wrong

was from the last thread. Thought I would repost since Chuck chuck, grassy and IF ignored it

I guess no one has an answer to this.

[chuckChuck]

Walk did you forget about durum? In some years the CWB had over 50% of the worlds exportable durum which allowed them to extract significant premiums and manage the US market so that it wasn't flooded with Canadian imports.

If you are looking for a response to your questions there are several independent studies done on the CWB. Check out the KFT study Daryl Kraft, Hartley Furtan, and Ed Tyrchniewicz on the economic performance of the CWB.

Richard Gray at the U of S also looked at the impact on the loss of the CWB in 2014 2015 and the numbers were very large.

[wakopa]

tell me how you want the study to go and i will make it look that way.

[furrowtickler]

Richard Gray is a putz.

[highwayman]

Yes let's talk about durum chuckles. How many times we were forced to carry 30 - 50 percent of our contracted production into the next crop year only to receive less return then the previous year. Your horse is dead, move along little doggy

[Integrity_Farmer]

[QUOTE=farming101;340340][URL="https://www.manitobacooperator.ca/daily/cwbs-2010-11-final-payments-set"]https://www.manitobacooperator.ca/daily/cwbs-2010-11-final-payments-set[/URL]

Farming 101 You said "Do you still have your grain tickets? Better double check".



I confirmed the protein spreads from the Canadian Wheat Board annual report.

Thanks for providing the chart. You can see from this chart that in 2010-2011 the discount for 1RS 11.5 protein versus 1 RS 13.5 was $1.05 a bushel. The protein premium for 1 RS 15.5 versus 1 RS 13.5 is about about $2.40 The total premium for 1RS 15.5 protein versus 1 RS 11.5 protein was $3.45 a bushel.

The total protein premium for 1R RS would be $3.45 a bushel for 2010-2011 crop year. I said $3.44 a bushel in my post.

It is not my problem that you cannot do math or read charts.

Again my appreciation for the chart that confirmed my analysis. The chart is good it shows that in 2009-2010 farmers received a premium of $1.25 a bushel for protein and in 2011-2012 a premium of $1.30 a bushel for protein.

This fall at my elevator in Manitoba farmers were getting about one third of that or 10 cents a full percent of protein.

[blackpowder]

Since you like senseless work. Overlay protein spreads for same time period for other jurisdictions.
And about durum. Because you can grow it we all suffer? Remember well going to presentation where board boob spent 30 mins telling room prices crashing dont grow it blah blah. Hand goes up "so about our durum".

[farming101]

I-F you are correct on the protein as the chart shows. Protein premiums do come and go depending on availability. That type of spread could very well be once in a lifetime.

[vvalk]

Walk did you forget about durum? In some years the CWB had over 50% of the worlds exportable durum which allowed them to extract significant premiums and manage the US market so that it wasn't flooded with Canadian imports.

If you are looking for a response to your questions there are several independent studies done on the CWB. Check out the KFT study Daryl Kraft, Hartley Furtan, and Ed Tyrchniewicz on the economic performance of the CWB.

Richard Gray at the U of S also looked at the impact on the loss of the CWB in 2014 2015 and the numbers were very large.

Chuck chuck. Your going to hang your hat on durum? What was durum maybe 20% of what the CWB handled each year?
As for Greys "look" at 2014 you can t be serious or that dumb. I can't believe anyone would take him serious after that study. He assumes that in the largest crop in history ( the cwb couldn't even have imagined a crop that big in their day) the CWB would have sold every bushel. In much smaller crops the CWB forced farmers to hold back as much as 60% of the durum and 40+% of the Cwrs. Can't remember on malt. In 2014 who knows how much the single desk would have forced farmers to hold back. Never mind the big crops 3 years running. That is why the basis never got crazy because farmers had to store it. Sometimes that happened 4 years in a row. We had durum on our farm that went through 4 birthdays. And yet you site this study, you do know better but I guess desperate times.