Cheap feed grain?

[TOM4CWB]

Poorboy, Cowman and Boone.

I was not trying to "stack" the votes in favour of any particular "Pro" or "Anti" wheat board producer.

The simple fact is that many people have become so fed up with the political nature of this debate:

If I can produce wheat, at 3 times the level of someone else... I lose 3 times as much money when the CWB tilts the Pool towards higher grades, and CWRS.

Take one look at the spread between a domestic;
1CWRS 13.5 ($232.97/t)
2CWRS 13.5 ($232.97/t)
3CWRS no px ($231.57/t)
1CPS Red ($223.27/t)
1CWRW no px (225.77/t)
2CWRW no px (224.77/t)
Canada Feed (220.87/t);
these were the wopping spreads yesterday.

And I ended up with $117/t for my #2CWRW 11.2px wheat through my freindly CWB Select IP program... hauled this Jan on freezing rained on roads.

Is there any wonder why my neighbours think I am crazy, in continuing this battle with the CWB?

They say: "Get on with your life and forget the CWB!"

Isn't this what we are talking about?

Data from;
http://www.agdayta.com/AgDayta/madx?u=UFWNA00101432&sg=03101&page=Newswires&id=80 1&listdate=Feb 20%2C 2004&ltype=newsList&pgNo=1

[TOM4CWB]

Cowman, Boone, Charlie;

If I had done a Basis Price Contract with the CWB for March 04 and priced on Feb 20/04 these are the spreads in the prices:

C$ Feb 20 CWB 1CWRS 13.5 $208.93/t
July 31st Mar. Basis CWB $013.74/t
Total Mar 20/04 $222.67/t

C$ Feb 20 CWB 1CWRW no px $188.81/t
July 31st Mar. Basis CWB $(015.62)/t
Total Mar 20/04 $168.19/t with $5/t discount to 2CWRW

THE spread if a CWB FPC were done is $54.48/t while CWB selling price spread is $8.20/t for our grain!

Even the PRO's are only $32/t apart between the 1CWRS 13.5 and the 2CWRW.

Boone/Charlie, what exactly am I supposed to do about CWB Fixed Price Contracts?

[TOM4CWB]

Boone/Charlie;

Just for interest;

I hedged my CWRW on July 31/03, the March 04 Kansas was $187.22/t CDN (CWB Price)

On Feb 20/04, the March 04 Kansas was $188.81/t CDN (CWB Price)

The PRO I was forced to price against was July 03 @ $155/t #1CWRW ($5/t discount to #2CWRW) while the Jan 04 PRO was $179/t ($5/t discount to 2CWRW)

The $24/t narrowing in the PRO, July 31st 03 was the last day to do a FPC/BPC nothing I had any control over, the CWB KEEPS this money.

And it happens year after year.

[TOM4CWB]

Poorboy;

I hope you can now see my point about land productivity.

I sold half my Select Winter Wheat off the combine in August, to the feed wheat market, for $133/t.

I was told it would have no problem in meeting a 1CWRW 12.5 on 70t I took from the same field.

Vertually no Winter Wheat gets to the CWB at port position, as it's flour yield is higher than CWRS... it normally leaves Canada as CWRS in a boat... with the Elevator Co's getting the premium to blend it of the $32/t.

That is if a farmer is stupid enough to deliver it as CWRW.

I understand my wheat went on the Market Development program select boat (I understand only enough for 1 boatload) to Malasia... discounted to push out US Hard Red Winter no doubt...

This small volume of wheat could have easily been sold south of the 49th, at a premium price, for $50/t more possibly than the CWB got... high frieght and all!

Obviously maximising the Winter Wheat growers return is not where the CWB is taking us.... unless it is delivered as CWRS!

Back to cheap feed grain!

Back to don't deliver it the the CWB!

Back to who should be able to vote?

[cowman]

TOM: I can understand your frustration of having to deal with an institution that is basically stacked against your interests. But I believe changing the vote is not a very pratical solution for this simple reason...it makes the large grain producer look like a greedy capitalist who wants to trample on the little guys rights! You do that at your own peril? You want to get those old farmers up in arms and active just keep expousing those views!
The best way is to go with Shirley? I suspect she is going to basically break the single desk? Just let her work her magic and don't stir up the opposition?
I think you'll have your open market soon?

[TOM4CWB]

Cowman;

The CWB is considering a change to the vote structure we have now;

Many say (including the CWB) that my farm already has "market choice".

I am confirming that again, I have not lost my mind, I am fighting for simple truth and justice... not to be greedy.

WE DO NOT HAVE MARKETING CHOICE, as long as we have a "single desk" CWB as the CWB defines itself today.

We need the diversify what we grow... but the CWB holds such a big stick... it is near impossible.

[boone]

Tom4cwb: if I had told you one year before they tore down the Berlin Wall you would have said Yeah right. But major changes happen quite fast. You may even get more than you bargained for. But cowman don't put too much stock in Shirley, nice lady, spoken to her, but at marketing meeting she lumped in mustard as a crop that needed to be released for our own salesmanship, so tread carefully here. She doesn't back off that is true, but you know the old saying "fools go where angels fear to tread".(relax I'm just paraphrasing here.)

[cowman]

boone: I have to agree with you that our Ag minister sometimes seems to not really have much of a clue when it comes to agriculture!
But consider that this is her last term in office? Got that little gem from an inside source in her office. She will not run again.
A lot of her strong backers have always been in the anti-CWB camp and I believe she will deliver...finally! So figure that she is working within a time frame of about 18 months max? It is generally believed Klein will call an election in 2005 after the Queen visits in August?
So TOM you will probably see some action this year or early in 2005? Patience is a virtue?

[TOM4CWB]

Cowman;

I believe Shirley is serious, and will work towards a resolution in the time frame you suggested.

The Ag Minister has a huge work load ahead in this time frame... BSE, Chicken Flu, CWB... the new CAIS startup.

I appreciate the work done by AB AG people... working to help folks in a difficult time back on the farm!

I sure hope in 6 months we can say this about CWB and federal gov. officials!