"Spring harvest" - the wildcard

[Cattleman]

You missed the point John on a couple levels. Just because they have done it this way from before your time does not make it correct.

Your last statement is incorrect. If I do a basis contract on cattle when the dollar is 75 cents, if the dollar goes to 74 at delivery my Canadian price absolutely does change. If I am basing my price in the US market, I should be paid appropriately.


Additionally, "the price remains the same either way you calculate it" is further incorrect because if you lock in a basis the way the grain industry does it, and the dollar goes from 75 cents to 74 cents. I may get the same "Canadian dollars" but in the scenario with a 74 cent dollar, when I go to buy a piece of equipment in the US, I do not have the dollars I should have if basis was applies properly. Please explain how pricing a commodity off an American market has nothing to do with PPP. As an actual business person, it absolutely has to do with PPP.

[farming101]

Regarding spring harvest no one knows. wait and see
But if spring harvest canola is important to ending stocks/use it could get interesting
Anything less than 1 MMt carryout would put the canola program in limp mode till new crop

[Cattleman]

John, I would like to get your take if you really think the system is fair? You say it is basic math....

Well I have 10 US Dollars, and 80 pesos. Can I have $90 please. That is the math you are doing. The obvious rule of basic mathematics applies here, that you can't add and subtract different units, but you are defending... I mean explaining that this is legitimate?

Thanks.

[blackpowder]

One hearing a lot that no one wants to buy spring thresh.

[Oliver88]

Due to wildlife droppings will all the canola have to be cleaned?

Sounds like all wheat will have to be.

[seldomseen]

Just my opinion John but this winter was warm melting followed by brutal cold over and over and I have heard people say in the past it has wintered good but I don't think this is the kind of winter that would give you good results. Any other years around here it has not been good.