US ITC Ruling on CWB

[TOM4CWB]

Charlie;

I am just a little confused.

Why did the CWB sell #2CWRS for more than #1CWRS?

If Canadian #1CWRS Wheat is better than US DOmestic 1HRS, why did the CWB undercut US Domestic wheat prices at all?

Since Canadian Wheat is not worth more, but in fact sells for less in the US, why are we not growing US Varieties that yeild more and have better fusarium resistance?

[TOM4CWB]

Charlie;

Another question is; why did the CWB stop selling HRS wheat into the US after the initial duties were started?

The commercial CDN industry in lumber keeps selling into the US... but not the CWB. Orders frm Ottawa?

What is going on here?

[charliep]

A question you would have to ask the CWB.

From a return to pool standpoint, wheat going into the US would be $15 to $20/tonne less competitive relative to other importers and therefore, sales priorities would change. In the past 4 to 5 years, the CWB would have struggled to supply traditional buyers of high quality wheat in off shore/domestic markets so not a lot of incentive to go south. Mid grade/quality of wheat should have been a different story.

There is also likely politics/philosophy involved in that the CWB may think they can influence US prices and from there world values by basically withdrawing from that market. Don't know if it works but I have heard the argument.

One of the thing the daily pricing contract values have highlighted is there are higher values in the US for some of the alternative wheats such as extra strong, prairie spring and winter wheat that is being lost through the pooling system/perhaps sales to off shore markets at low values.

Price is not the only issue. The US is also a nice safety valve that kicks in when off shore sales opportunities/port capacity is tested and farm delivery ability to generate cash flow is critical.