SPE and CWB PRO for Oct.

[TOM4CWB]

Charlie;

I see the CWB has lowered the 1CWRS 13.5 to $195/t, 1CPS down to $166/t and feed barley down $3/t.

What effect will this Oct. PRO have on the SPE, and what weight will the CWB prices have in determining the various grains, CWRS, CPS, and feed barley regarding the SPE final value for Oct.?

[ivbinconned]

Monthly Grain Prices;

HRS #1 13.5 CWB PRO $l95 or $4.09/bus.

North Central Montana equivelent HRS CASH Price $4.91/ bus.

Malt Barley CWB Pro $3.23/bus.

NCM HARRINGTON Cash price $3.96

Dollar conversion at $1.32

I read a study of the CWB's book keeping and it appears that the CWB with some creative booking keeping have effectively hidden about 70 cents per bushel worth of grain marketing expense.

The creativeness shows up in the way they report interest earnings and interest paid. The inerest is reported as a net revenue with paid interest substracted from the revenue interest and entered as a net revenue and the paid interest is not entered as and expense in the marketing espense. The manovre reduces the CWB reported expense by $.70/bus.

No wonder farmers are in a crisis state most of the time in Western Canada.

May I remind you if we had and open market with and open price discovery, that cash price in Montana would duplicate itself into our market immediately if not sooner.

With the CWB marketing 20% of the exportable wheat in the world, cherry picking a price off of the MSE HRS future and not participating in the world price discovery but only weighing on the price and causing it to fall.

It appears that only about 30% of the exportable wheat in the world is trade on an open market for price discovery and the other 70% of marketing tends to drag the price down.

Its no wonder that the wheat price remains a narrow low price range when 70% is trade without the benefit of price discovery.

Oh our HOLY marketer. AMEN.

[TOM4CWB]

Is this the Kernel?

Your handle didn't show up on my Topic identifier!

[charliep]

Feed barley - none. Based on average western December barley futures during October minus $20/t. My calculations show and average of $134/t futures or $114 calculated value. Payout in the $14 to $16/t range.

2 CWRS - No impact from the PRO Average MGE futures price to date $173/t about or $128 after $45/t basis is removed. Depending on what happens in the market next week, payout in the $45 to $50/t range.

2CPS - Impact from the wider spread. Spread between 1CWRS 11.5 and 1CPS now $19/t in Oct. versus $17 in March. Likely payout in $50 to $55/t range.

[charliep]

Wasn't me Tom. The phantom author appears to be very correct in what he says and I wish that the CWB directors could put their attention to what was said. But they are to busy putting out fires from every other direction mentionable.

Has anyone else noticed that Chairman Ken Ritter has shown his anger and impatients with everything that has been going against his beloved CWB.

He answers questions by putting blame on who ever has the nerve to ask questions of the unapproachable policies of the CWB. He even believes that the CWB is a commercial trader when they don't enter the price discovery open market but pick away at the price from a secret distances.

I believe most of the directors are like the farmers I have talked to in my area ( I was one of them myself for 20 years) they have never looked into or questioned the way that the CWB markets their grain but believe everything that CWB management tells them about what a great job they are doing for us. They keep telling us we are getting a premium for our wheat and barley. Then they tell us somewhere else that they get an average price for 50% of are HRS and the other 50% is worst than average.
Now with the availability of the Internet one can see that the cash price in near by USA is always $.75 to over a $1.00 more on a flat market than the promised PRO of the CWB. Who should we believe Management who appear to be lying to keep their jobs or independent figures that are very easily substantiate. Most farmers don't want to know that some one is getting a better price then they are for the same product. One farmer even stated that at least everyone was getting the same price, which would indicate that he couldn't compete on the open market and if he was in crisis everyone else should be too.

Are we going to treat farming like a business or are we going to extent it's welfare state into the future with poor market management.

All independent studies done on the CWB state that farmers would be better off with marketing choice.

I just wish most farmers would think about it and the freedom and wealth that they give up thru poor marketing.

Study why the CWB was established as a single desk monopoly in 1943. Study how they market and how they determent the price in the pooling accounts. Even if you take everything with a grain of salt you will be surprised at your change in attitude. But also study some independent studies done on the CWB. Some are available on the website www.farmersforjustice.com and there are other site also. The farmers that went to jail are not all nut cases but maybe chose a very hard line way to discredit the CWB. Laws are not changed by chance but by strong resistances.

I'am not sure if the CWB monopoly shouldn't be a human rights, charter of rights or a constituential issue but it should fall into one of the categories as freedom is about the right to choose.

[TOM4CWB]

Kernel;

Your handle didn't show up either!

The CWB is sure holding down barley and low grade wheat prices... no doubt... a direct income transfer from the grain sector to the livestock sector.

This is the reason the CWB is in place, to protect the industrial complex that depends upon cheap food/feed/ethanol feed stocks to power the Canadian economy!

We have not seen prices this low for a decade in the feed grain side... while canola and pulses hold their own... this should tell us something!

[sshiels]

This has nothing to do with the SPE, but this thread has gravitated to a commentary on the CWB, so I have some thoughts.
I worked as an elevator agent for a couple of grain companies in MB and SK for 10 years. We were fed the same line of bull that the farmers are fed. "The CWB is the best marketing agent" blah, blah. IF they are the best out there, then why not prove it by creating a dual, or free, marketing system? With their "expertise", they should have no competition from anyone in the wheat marketing game, and would run everyone else out of business.
As far as the farmer elected directors go, I believe that they all go in there with their peoples' best interests at heart, but as soon as the first paycheque shows up, whatever the CWB says goes. It is amazing what people will do for money.
In my area of Saskatchewan, we have elected two very pro dual market guys that have done nothing once in there. Both good guys, just swayed by the big bucks.
Not like this is ever going to happen, but these positions need to be a much, much lower paid job, then maybe we would see some action from these individuals.

[TOM4CWB]

ssheils;

Very good observations!

District 2 Director Jim Chatenay is the only one I have seen not to be swayed by the money, and Jim works 10 times harder than the rest of the directors trying to make the CWB Accountable.

[rodb]

sshiels

It is not the problem with the daily pay or the yearly wage but the fact that most of these guys come from the era when the pools met for two weeks to discuss policy and other management issues. They are just expanding the job to fill the time that they can afford to be away from their business. If they got with the times, these jobs would be much lower paying as they would demand only one or two days a month including travel time.