CWB Feed Wheat Spreads

[TOM4CWB]

Charlie;

I see these feed wheat spreads @
http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/daily_price/dpc-spreads-wheat-2005-20051017.html

Canada Western Feed (91.14)
Canada Western Feed Red Winter(57.15)
Canada Western Feed Red Spring(91.14)
Canada Western Feed Extra Strong(64.65)
Canada Western Feed Canada Prairie Spring Red(60.90)
Canada Western Feed Canada Prairie Spring White(60.90)

On the Price page Oct 14/05 these are the spreads:

Canada Western Feed (95.59)
Canada Western Feed Red Winter(62.91)
Canada Western Feed Red Spring(95.59)
Canada Western Feed Extra Strong(68.66)
Canada Western Feed Canada Prairie Spring Red(65.91)
Canada Western Feed Canada Prairie Spring White(65.91)

Now what exactly is the price if I deliver feed wheat basis Port Vancouver B.C. Canada... ?

[TOM4CWB]

Charlie;

Further, how can the CWB come up with today's spreads this early... as it must be a formula based system and have nothing to do with actual US prices... or have I missed something?

The farm gate price on the DPC has no basis in fact to real US feed wheat prices just across the 49th, does it Charlie?

[charliep]

No wheat quotes available but likely similar to corn (competes into the same markets off the west coast). Corn at the US gulf is about $2.70/bu or somewhere around $130/tonne range. That would make the spread about $70/tonne ( /-) relative to to a $200/tonne 1CWRS 13.5 protein. The price in Portland for 1DNS 14 protein is $220/tonne.

So your question is where has the $20/tonne gone. Don't know.

[charliep]

First sentence should be no posted feed wheat prices - prices for other wheats are readily available. Just type in "Portland Grain Prices" in google.

[TOM4CWB]

Charlie;

Does the US system even export feed wheat... or create feed wheat in the first place?

Most Canadian wheat the grades "feed" could be used in the domestic industrial market... from this year's crop my best guess is. It is well over 60lbs/bu... of good px... and would make good bread wheat in most countries of the world.

Is this not another example of the CWB Monopoly stopping sales of wheat that would "undercut" the CWB pools... even if it bankrupts those who had a bad stretch of weather this harvest?

Is this a fair way to market our grain... the CWB monopoly to destroy those most hurt by natural disaster...

What is worse... a company making a good profit... or us western Canadians intentionally kicking our neighbour who is down... and no one benifits... I forgot the supply managed people and livestock folks are grinning all the way to the bank!

No wonder grain farmers in western Canada cannot vote the CWB monopoly out... there must be way more CWB voters with livestock... than those with grain alone grown on their farms!

Has anyone ever looked at what just straight grain farmers of economically commercial size... need from a wheat and barley marketer in western Canada?

Does anyone even care?


I know... grow Canola and pulses... and shutup TOM.

[carebear300]

Tom you are way smarter than me if you can make much money growing peas or lentils these days, and as for canola it is only profitable on my farm if I grow lots and lots of bushels. Unless things change quickly we are in serious trouble. Am sorry if this comment is in the wrong chat room but couldn't keep quiet any longer.

[TOM4CWB]

Carebear;

Pulses are profitable because of the yeilds on Canola AFTER the pulse crop (N fixation and soil conditioning).

I agree things are not exactly a rose garden right now... but when $20/t goes missing on wheat... how much worse this makes the whole feed complex including feed peas/fababeans... which then affects edible pulses as well. Everything is chained together... and can't be better than the weakest link.

By the way new crop 06 IPCanola is a good hedge right now! We are locked in at over $8/bu on over half of our farms 06 crop.

Thank You LORD for Canola!