Ontario Wheat Board Prices versus CWB

[charliep]

Adrian Measner, Chief Executive Offficer CWB indicated that OWB prices were substantially below that of the levels achieved by the CWB. The quote can be found at:

http://www1.agric.gov.ab.ca/$department/newslett.nsf/all/cotl4663?OpenDocument#

Can anyone from Ontario or with contacts in Eastern Canada comment on this? Has a graph with this information been presented at either the Agricore United annual meeting or at the accountability meetings?

[TOM4CWB]

CHarlie;

This is what CEO Measner said:

They had just recently released their pool return prices for the current year, and there will be more information coming out, and have a look at those prices and look at the prices that we’re obtaining.

They are a lot lower. Take into account that they are $25 closer to tidewater than we are.

I think it’s important to look at that because that is an example of what happens when you have choice.

It does remove the power of the single desk.

And I think if we can provide choices within the power of the single desk, we’re all a lot better off.

Because if our markets are willing to pay these premium prices, then I think it’s in farmers interests to get those prices and turn them back to farmers."

I note that OWB pools are shortened to 4 months long (June to Sept), paid out 90% by Dec, and shortly after audited statements finished payment.

Comparing a Winter Wheat market (OWB markets almost all winter wheat) with a totally different grading system (Canadian Eastern grade standards are very different from CWRW) would tell a very interesting story...

Let us compare Soft White Wheat, Winter Hard Red export values with the Ontario Wheat Board...

I would be very interested to see the outcome myself...

With CWB payments of just over $3.18/bu on my western hard winter wheat I would appreciate the opportunity to see just what performance the CWB is capable of.

Benchmarking;

Let us use the CWB December PRO, as this is the finalised date of the OWB pool for 2003 harvested wheat.

Let us back off the PRO by $25/t to get the wheat to Ontario instead of export position St Lawerence.

Experience dictates #2CWRW would equal a #1CERW... lets have a close look!

I will take the challenge CEO Measner, and the result will be marketing freedom if Choice beats the CWB?

[charliep]

The following are links to the OWB historical payments and current forward contract bids.

http://www.ontariowheatboard.com/Payment-sum.html

http://www.ontariowheatboard.com/Basis.html

[eatmorewheat]

Ontario farmers TODAY February 20, 2004 are receiving around $180.00/tonne for their soft winter wheat. Hard spring wheat is around $200.00/tonne

That is a cash price in their hands in 10 days for delivery to an Ontario flour mill. What is the CWB paying trapped farmers in western Canada TODAY?

If anyone wants daily Ontario cash bids let me know.Email is eatmorewheat@hotmail.com

Free wheat in the west.

[craig]

I find it ironic that the CWB is now trying to compare themselves to Ontario. In past it was always argued by the board that it wasn't fair to compare with Ontario because of different markets( more domestic sales)and different wheat qualities. Unless you do historic comparisons you have little basis to make any kind of comparison. Judging by the open market prices quoted we do know who is making more money in their pocket. We also know in terms of winter wheat that the CWB is marketing nothing into the U.S. while exports out of Ontario into the U.S. this year are projected to be about 800,000 tonnes.