Market pukes and everyone is quiet?

[Incognito]

The meeting was last night in Marengo and was a non-event. 75 farmers eating supper and listening to the same old same old.

[Ration-Al]

It's on the website. PRO today is $5.47 for CWRS 13.5 and the fixed price is $5.82.

http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2004-mhrs-20040308.html


Fixed Price Contract and Basis Payment Contract
Current pricing schedule
Wheat (CWRS, CWES, CWXHW)


--------------------------------------------------------------------------------

Effective: March 08, 2004 2 p.m. Winnipeg time
Expires: March 09, 2004 7:30 a.m. Winnipeg time
The next pricing schedule will be available at 2 p.m. Winnipeg time on March 09, 2004.


--------------------------------------------------------------------------------

Prices offered are based on the reference grades for CWRS, CWES and CWXHW, as per the "2004-05 Fixed Price Contract and Basis Payment Contract: Terms and Conditions", in store Vancouver or St. Lawrence, are:

$ US/bushel $ Cdn/tonne $ Cdn/bushel
Futures Prices - Minneapolis Hard Red Spring
December 2004 $4.07 $199.26 $5.42
March 2005 $4.06 $199.14 $5.42

--------------------------------------------------------------------------------

No. 1 CWES, February 23, 2004
(reference grade) PRO
$170.00 $4.63
Fixed Price $180.88 $4.92
December 2004 Basis -$18.38 -$0.50
March 2005 Basis -$18.26 -$0.50
No. 1 CWRS 13.5, February 23, 2004
(reference grade) PRO
$201.00 $5.47
Fixed Price $213.73 $5.82
December 2004 Basis $14.47 $0.39
March 2005 Basis $14.59 $0.40
No. 1 CWXHW 13.5, February 23, 2004
(reference grade) PRO
$201.00 $5.47
Fixed Price $213.73 $5.82
December 2004 Basis $14.47 $0.39
March 2005 Basis $14.59 $0.40

[Ration-Al]

And if you look back on the 1st of March the fixed price contract was $6.06 which is not exactly 60 cents higher than the PRO at $5.47 but it is close.

The topic of the post is "Market pukes and everyone is quiet?"

Wonder how many people locked in $6.06 last monday. Probably as many as locked in their canola that day, maybe less.

[Ration-Al]

By contrast the Ontario Wheat Board's cash price yesterday was $5.08 for Hard Red Spring Wheat for Oct/Nov/Dec delivery.

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

Compare to CWB at $5.82. A $0.76 spread. If you equalized the freight the spread widens even more. In other words if a farmer from the praries were to deliver his wheat to the doorstep of the Ontario miller he would get the $5.82 plus freight from Thunder Bay to the mill in Ontario. That Ontario system sure is working guud.

[Incognito]

What is net in farmer's pocket. When do they get their cash and when do you get yours.

Ontario's price versus CWB price at your farm Al? Less all freight/handling.

get your speaking notes from Mr. White and then answer.

[Incognito]

What is net in farmer's pocket. When do they get their cash and when do you get yours.

Ontario's price versus CWB price at your farm Al? Less all freight/handling.

get your speaking notes from Mr. White and then answer.

[Incognito]

What is net in farmer's pocket. When do they get their cash and when do you get yours.

Ontario's price versus CWB price at your farm Al? Less all freight/handling.

get your speaking notes from Mr. White and then answer.

[Incognito]

What is net in farmer's pocket. When do they get their cash and when do you get yours.

Ontario's price versus CWB price at your farm Al? Less all freight/handling.

get your speaking notes from Mr. White and then answer.

[Ration-Al]

We are at a freight disadvantage. I would love to have 10 million consumers living on my doorstep. That is not the real world.

What's your point?

[Incognito]

The numbers you are comparing are bogus. Ontario wheat farmers get an $18.00 protein adjustment for wheat over 12.5. So add 49 cents to your numbers.

What is the net price at your farm Al? How much are you getting TODAY for wheat dropped in the pit versus HOPE that the CWB won't screw it up again for the balance of the year? Answer the questions.

That is my point.

The number that Ontario Wheat show is the actual price for dropping grain in their pit and then you add protein payments.

ND wheat this morning is quoted in Canadian dollars at $5.17 without protein premiums. And last I looked, they had 1 million people on their doorstep.

We don't market wheat in Canada as a country. We segregate east versus west.

At your next Board meeting, maybe its time to have Sheila Fraser in to look at the books too. Thats is what a fiscally prudent director would do.