Sask Wheat Commission Report Excessive Basis aka Grain Companies Screwing Farmers

[Integrity_Farmer]

Here is a chart from Sask wheat that indicates the basis (what the grain companies steal). current port prices minus country price at Rosetown, SK equal the basis. The basis would include freight and handling. Freight and handling are legitimate deductions.

chart basis indicates $118.44 a tonne for 1RS 13,5 or $3.22 a bushel
$132,75 a tonne for 2RS 13.5 or $3.61 a bushel
$143.67 a tonne for 3 RS or $3.89 a bushel

This analysis from Sask wheat would indicate that the grain companies are stealing up to $2.80 a bushel approx. while farmers have just experienced one of the worst harvests on record.

I am curious are the board members of Sask wheat happy with this kind of basis?

https://static1.squarespace.com/static/5c40f31a620b85cf0d073e7b/t/5dcb159ccf21396829a75e24/1573590432071/Wheat+Market+Outlook+and+Price+Report_Nov.+12-%2719.pdf https://static1.squarespace.com/static/5c40f31a620b85cf0d073e7b/t/5dcb159ccf21396829a75e24/1573590432071/Wheat+Market+Outlook+and+Price+Report_Nov.+12-%2719.pdf

[TASFarms]

Why can’t they fill out the whole chart. More keeping us like mushrooms

[LWeber]

[ATTACH]5245[/ATTACH]

Here is a chart from Sask wheat that indicates the basis (what the grain companies steal). current port prices minus country price at Rosetown, SK equal the basis. The basis would include freight and handling. Freight and handling are legitimate deductions.

chart basis indicates $118.44 a tonne for 1RS 13,5 or $3.22 a bushel
$132,75 a tonne for 2RS 13.5 or $3.61 a bushel
$143.67 a tonne for 3 RS or $3.89 a bushel

This analysis from Sask wheat would indicate that the grain companies are stealing up to $2.80 a bushel approx. while farmers have just experienced one of the worst harvests on record.

I am curious are the board members of Sask wheat happy with this kind of basis?

https://static1.squarespace.com/static/5c40f31a620b85cf0d073e7b/t/5dcb159ccf21396829a75e24/1573590432071/Wheat+Market+Outlook+and+Price+Report_Nov.+12-%2719.pdf https://static1.squarespace.com/static/5c40f31a620b85cf0d073e7b/t/5dcb159ccf21396829a75e24/1573590432071/Wheat+Market+Outlook+and+Price+Report_Nov.+12-%2719.pdf

Another left wing, gutless, nameless poster.

Integrity is never nameless.

[sawfly1]

Pretty considerate of the Harper
Govt. Making it hard for us to know
How bad
We are getting shafted.

Much better this money go to the Richardsons anyway .
To Folks that need it.


It would really suck , if we had to see it in black and white every
Week.

What is the saying
Ignorance is bliss

[malleefarmer]

Same stuff can be found here except opposite results basis was shocking under single desk but grain marketing here is vastly different to you guys

[farming101]

Oh no, not another piece based off "work" by R Gray.

Then Sask Wheat expects their "work" to be swallowed down whole.
Where is my 2019-20 request for refund of checkoff form?

[chuckChuck]

Show us the numbers if Sask wheat is wrong.

Readers deserve more than insults and useless rhetoric. Especially from Weber.

If you are that useless that you can't counter the Sask Wheat information with something substantial to disprove it, then you shouldn't embarrass yourself in public.

[Braveheart]

Is the wheat basis very weak right now? Of course. Can a a farmer ( or a lefty prof) look at the basis and itemize line by line all the numbers and say this is what the basis should be? No way. Cost of carry can be figured, risk somewhat as markets are flat and not volatile can be closely quantified, but, the general lack of demand that exists for wheat is difficult to plug into basis if you're not the elevator company that has to find a home for wheat delivered into the system.

We know basis is awful. On our farm it's a signal to not sell cash wheat.

How much did this study cost SK Wheat? Wouldn't dollars be better spent on market development? New uses, new customers, new trade routes, building better relationships. The kind of thing the CWB was supposed to do sans the hookers and party junkets for the buyers that came to town.

[chuckChuck]

There have been several calls on Agriville for more transparency in the grain marketing system.

Farmers need to know what the basis looks like over the whole marketing year or several years to determine if the basis is a true reflection of the cost and risk of moving grain from farm to customer.

Or do grain companies often take excess profits in an uncompetitive system?

It seems that many producers on Agriville are suggesting the latter.

Now lets see the numbers so all parts of the grain system can see what going on.

[wd9]

Agriculture has yet to embrace Blockchain transparency like oil land leasing for example. Everyone along the chain knows the costs and payments, hence no one takes or gives up more then they should. It was one of the fellow Astech award winners couple years ago, software developed right here in AB.

Perhaps a good project for the million$ collected by Sask, AB, MB Wheat commissions.

[farming101]

Show us the numbers if Sask wheat is wrong.

Readers deserve more than insults and useless rhetoric. Especially from Weber.

If you are that useless that you can't counter the Sask Wheat information with something substantial to disprove it, then you shouldn't embarrass yourself in public.

Listen, I did one of these exercises a while back. I put out researched and verified numbers. No reply with any numbers, just more "prove it" statements.

Do a little digging and research for yourself to prove the accuracy or inaccuracy of a rather important letter to farmers, paid for by farmers.

Here is where to start:
1) Is the sales price of DNS 14% in Portland the exact same as the sales price of #1 13.5 CWRS in Vancouver?
2) Are the price quotes from Portland based on actual sales prices or asking prices?
3) When will the wheat delivered to Rosetown by a farmer be matched to an export sale and what will the sale price of that export deal be at that time?

[walterm]

Listen, I did one of these exercises a while back. I put out researched and verified numbers. No reply with any numbers, just more "prove it" statements.

Do a little digging and research for yourself to prove the accuracy or inaccuracy of a rather important letter to farmers, paid for by farmers.

Here is where to start:
1) Is the sales price of DNS 14% in Portland the exact same as the sales price of #1 13.5 CWRS in Vancouver?
2) Are the price quotes from Portland based on actual sales prices or asking prices?
3) When will the wheat delivered to Rosetown by a farmer be matched to an export sale and what will the sale price of that export deal be at that time?

How does anyone other than grain merchant know when that grain was sold at what price. It might have been sold 2 years ago for delivery today or next month. I remember when CWB announced sales multi years in advance I bet it still happens.

[farmaholic]

How does anyone other than grain merchant know when that grain was sold at what price. It might have been sold 2 years ago for delivery today or next month. I remember when CWB announced sales multi years in advance I bet it still happens.

What happens if they are way far off side of the current market in which they have to source the grain?

Hedged?

Some GrainCos have multiple shelves(read countries) they can pull/sell the grain from, wanna bet specs matter to customers and end users. That it's not always only about price to the buyer.

[malleefarmer]

Walter I’d say 60% of grain sales are back to back 20%hedged 20% spec buying

Been wrong before someone mentioned multi years sales nah easy way to lose shitloads.

Single desk marketing got burnt by that time and time again.

I loved the single desk in a rapidly rising market only time it worked don’t have to be a wizard to work
it out

[sawfly1]

I admit I know little of about the
Ins and outs of the grain trade.
But the whole argument about the
Board was no transparency.
Trust us we are doing the best
We can. But info was limited.

For better or worse , we have gone this way.
Supposed open market.
But still no info, probably less than before.

A pretty lame excuse about grade and FOB price being proprietary
Info.
I guess the only hope , for free market competition .
That is supposed to work in theory.
First .Is a rail system that works
.and
Enough grain co.s trying to cash
In on the windfall by building facilities .

Once that hits saturation .

Then there is hope.

Rather than take what we give you.

The actual BS line , about competing for our business,
Might actually start to happen.