Portland Prices for Wheat

[TOM4CWB]

Charlie;

On The Portland Price Review, DTN(Oct. 27/05): these are the reported Portland Prices (US/bu.):
HRS 14%;
(10-01-04)$4.60
(01-03-05)$5.10
(09-01-05)$4.83
(10-20-05)$5.13
(10-27-05)$5.22

HRW 11.5%:
(10-01-04)$4.04
(01-03-05)$4.30
(09-01-05)$4.24
(10-20-05)$4.59
(10-27-05)$4.67


Now for CWB DPC Prices in Canadian Dollars Vancouver B.C. Canada 1CWRS 13.5

(09-01-05)$5.11
(10-20-05)$5.24
(10-27-05)$5.31

Charlie, why does the CWB appear to give away CDN$ advantage for nothing?

[cropduster]

So Tom,have you heard much talk about revving up the Andy 500???Been thinking of some off season recreation!!

[TOM4CWB]

I am waiting for the last day before freeze-up to plant some Canola...

US cross border exports are not my goal on wheat marketing at all.

We have numerous advantages to sell our own grain... through the CDN system... at substantially higher prices than the CWB obtains... if the CDN gov. would allow us this opportunity.

But just like smaller domestically supplied diesel fueled efficient pickups are banned... so is extracting a premium through smart marketing choices on wheat and barley.

I wonder how much the Oil Companies and GM/Ford/Dodge paid the Liberals off for their monopoly?

[charliep]

For the CWB to answer.

I would note that Portland prices reflect a export sale. The CWB producer pricing options are a forward pricing tool for farmers that have some relation to the pool return outlook. Daily pricing contracts are supposed to follow US prices but farmers have no clarity what this means (at least I don't understand). Even US elevator bids are driven by actual sales/customer needs but there is none of this relationship in the DPC - it is simply a way to lock in a price outside the pooling system.

The real test of the daily pricing contract will be the relationship with the producer direct sales prices. The spread here will reflect the amount that the CWB is taking for risk/administration (or perhaps deposited in the overall pool account as a transfer of wealth).

Is anyone tracking this? I note the producer direct sales prices are not posted but rather can only be obtained with a phone call to the CWB.