China Sale

[ianben]

Perhaps because CWB sells unpriced grain Ukraine and and Canada will always have poor farmers.

1,000,000 tonnes with just a premium over the lowest price in the world and you think you have done a good job!

These sort of deals do nothing but drive prices lower and lower to the detriment of all farmers.

At least Ukraine and Argentina put a price on a tonne.

The CWB gets a premium but on what?

[charliep]

Was to the Ukraine this summer and I don't think any Canadian or European farmer would want to trade places.

Just as a interest, the sale to China would likely (not 100 % sure) be at competitive prices with Portland wheat. These prices can be found at:

http://www.ams.usda.gov/mnreports/JO_GR110.txt

Dark northern spring 14 % protein wheat is listed at USD $5.16 to $5.26/bu or about Cdn $235/t. Roughly similar to 1 or 2 CWRS 13.5 protein in Vancouver.

Hard red winter wheat (13 % protein) is posted at USD $4.35/bu or Cdn $196/tonne. DNS 13 % protein has a similar value.

Depending on the quality, this is likely a good range where a Chinese sale would occur.

[Incognito]

Ianben:

The US Export reports were issued on Monday and as a reminder why they were instituted, there is a great website explaining why and how it is collected.

For those of you that do not want to read “The Grain Merchants” as it explains in detail why it was instituted, here is the Coles Notes version.

Quote:

The Export Sales Reporting Program has its roots in the unexpected purchase of large amounts of grain by the Soviet Union in 1972. The huge, unanticipated purchases of U.S. wheat and corn that year produced a sizable run-up in U.S. food prices and depleted U.S. reserve stocks.

In addition, there was concern that some companies might have had an unfair advantage in that situation because they had access to market-sensitive information that was unavailable to the public. To ensure that all parties involved in the production and export of U.S. grain had access to up-to-date export information, Congress mandated Export Sales Reporting in 1973.

Unquote

The CWB was involved in some backdoor politics during the great grain robbery as well. In fact they sold first, before the huge run-up.

Transparency is a key issue in the United States’ continual challenge of the CWB.

[wmoebis]

charliep
is the 5.16-5.26/bus at port like ours?
Also remember that DNS and other US varieties are higher yielding and they have lower grading factors if we grow DNS etc. it is feed wheat. We have to compare apples to apples.
We grow the Cadilac's of wheat and sell into Chevrolet market price.
If we grew the same higher yielding quality as our compeditors could we still get the same price.

[charliep]

Prices are quoted at Portland Oregon. This should come close to Vancouver in terms of costs - I think Portland/Seattle port costs are lower but there are factors.

To bring the prices back to the western prairies, you would knock off anywhere from $50 (W. AB.) to $65/tonne (SK.)- that is about $6 for fobbing, $40 to $55/tonne for rail freight, elevation, cleaning. and about $4/tonne for CWB costs (hopefully someone will correct me if these costs are out).

Milling quality DNS cannot be compared to feed wheat. There advantages and disadvantages to both systems. Besides, quality is in the eye of the buyer and their willingness to pay.

[farmerfudd]

seems to me this big deal is something that would happen anyway. Tis is simply a photo opp. for Martin and his cronies as well as likely a side deal that says the deal will only happen if the shipping gets awarded to His own shipping company.

[wmoebis]

It was stated in CWB release the value of sale. Then earlier posting here says price hasn't been negotiated.
The public reading the CWB release are saying $250/ tonne farmers grow aprox 1 tonne/acre thats pretty good money.
Lets back this up to reality. The latest pro $124.55/ bus using an average of #2 11.5 pro. backed of to Sask. Now back that to farmers bin who is another 50 miles from dilivery point subtrct all input cost etc.
Maybe CWB news release should have read Farmers lose money on another China Sale. Then polititions and public would look at farmers different.
Or rather the public would look at politions different.

[wmoebis]

sorry thats 124.55 per tonne. Still dreaming this AM.

[wd9]

wmoebis: Big assumption there that politicians and the public are even looking.