CWB exempts itself from the UN

[TOM4CWB]

Cropduster;

At both the Carseland and Edmonton Unaccountability meetings the CWB could not answer why it exempts itself from the UN agreement on Contracts.

Chairman Ritter, President Measner and all the CWB support staff had no answer why the CWB should exempt itself in the Producer Direct Sales and Export License Agreements farmers are required to sign to do the buy-back.

Amazing the CWB Directors don't have a clue of half of what they are doing to wheat and barley farmers!

The CWB is busy with the last initial adjustment costing millions in grade adjustment for farmers and Agents of the board.

If a 1CWRS is used to blend up a 4CWRS ... the spread before the initial adjustment was about $14/t less for the blend than it is now.

THe CWB I understand retroactively goes back to August 1/05 and claws back this higher spread. Now deals made on these blends are toast... or the Agents are out literally millions of dollars. And the CWB Directors were Very PROUD to anounce this to us in Edmonton.

Same as the CGC not being in our area to grade cars being loaded for CWB account... it will cost us millions in blending... sent instead to the CWB pool... directly at a local cost to our farms/elevators.

THis is accountability?

[charliep]

Can you go into a little more detail on spreads and impacts on blending? It has major impact on farmers inspite of the fact no one seems to care. It also impacts grain companies risk accessment and why they may grade harder at times to keep their butts covered. It also raises issues about how much blending does and should occur at primary elevator (albeit a potentially monster high through put) and how much at port. Hopefully, we are not doing a lot of #1 and #4 you describe.

[TOM4CWB]

Charlie;

I don't know of one high throughput that isn't licensed as a Primary Elevator.

Terminal elevators can not blend without permission of the CGC... and blends are typically to the benefit of the CWB pool accounts... not the Agent at terminal port position.

When a year like this one allows one tonne of 1CWRS to upgrade 4 tonnes of 4CWRS... the benefit is massive for farmers delivering... as the spread for a 4CWRS Canada Feed is massive to a 3CWRS... especially if it has some px. like 13.5.

The new spread is $31.20/t, where the majority of the crop year was at $19.65/t

Since by far the majority of CWRS is 3 borderline 4, the farmer is by far the biggest winner with the spread being $43.85/t now and initially $52.50/t against the #4 CWRS grade. This can equate to $80/ac in a hurry... the differnce between bankruptcy and survival for many farms.

Fair ball if the CWB changes the spreads... but not retroactively... and it sucks when they are proud of what they have done...

If I am wrong on the retroactive to August 1st someone let me know... but this is the way it was in the past.

The sick part further to this situation is that 1CWRS IS worth $40/t more than the PRO... but this message is not being transmitted back to us either.

For close to 4 months the port PNW 1DNS14px on CWB charts was trading around $185/tUSD... ($230/tCDN)and the high quality milling market is paying $30/t west coast premium to this according to Ward W in Edmonton yesterday.

The signals this system has created are so far from transparent... to real world demand... no one in their right mind could call it commercial!

[wmoebis]

Your right TOM but how much grain are the grain companies buying for 1 and 4 then blending it on their own. None of this money gets back to the producer. Let alone feed wheat, wheat of other classes, they blend our good grain to the bottom of the grade so there is no room for the CWB to blend at port. These big elevators tout themselves to be terminals. They infact do all the work of a terminal. Clean to export standards, dry, blend to export standards and ship to end user and export. Direct hits to boats and mills both east and west and when we can into USA.
If the CGC lisenced them as terminals like they are, all the money for blending would be back into the pool accounts. There would be no reason for the grain companies to try to rip us off for grade or protien.
We sell into one pool account then the grain companies blend it off into anouther account for thier profit. Distorting how much grain is in each account. Same goes with our protien you can go to three elevators and everyone will give you different protien depends on what (they) want to blend for thier profit.
The problem lies in they way they are lisenced. If they were terminals, as they should be, they would never have control of our grain. They would be paid only for services provided. The checks would be issued to us and them by the CWB. all profits for grade and protien improvement would be in our pool accounts.
The problem here is with the CGC lisencing. We will never have control and make a profit until we get this changed.

[TOM4CWB]

wmoebis,

You must live on a different planet than I am on... Agpro, SWP, Agricore United, Cargill, Pioneer... you name the co., they are blending for farmers to get the business.

This has happened, year after year, time after time, elevator after elevator... I see it all around me.

You must have really offended them... or they would blend and help you as well!

If so much money was being made... show me on any of their bottom lines where it is!

IMHO...The fear mongering used by the CWB and monopoly supporters is deceptive chatter... meant only to hurt those who work hard, want to make an honest living... and provide value to make our local communities stronger!

[parsley]

Tom4CWB,

What exactly do you mean "exempts" itself?

Parsley

[TOM4CWB]

Parsley;

It is written right into the CWB contract that the UN agreement on Contracts doesn't apply Page 2 Clause 8, if my memory serves me correctly.