CWB Rejects 50% /30% of Wheat

[charliep]

As a comment, it is too bad there are some some actual prices/price guarantee's associated with the current CWB guaranteed delivery contract on feed wheat. A lot of farmers are stuck with piles of tough and damp feed wheat with limited capability to dry and perhaps higher costs than this same activity could be done at an elevator. Provided the right price signal, a lot of this might move into the export market.

I note the deadline for this program is today.

[Vader]

AdamSmith, correct me if I am wrong but I thought that the CWB accepted 100% of the feed wheat and #5 durum that was offered to it last crop year. So the did "blow it all out" to the extent that producers were inclined to take those blowout prices. And like Charlie says Korea will always take more at prices that are competitive with corn.

[TOM4CWB]

Vader;

Good comment on Korea.

If the CWB is a master marketer, why are we not cross hedging feed wheat on corn futures and putting $1/buUS in our pocket from the hedge right now.

This would have allowed the CWB to sell millions of tonnes of feed wheat at $1.20/bu more... and solved our problems with our wheat.

I begged the CWB in the 2002-03 to start a hedge program of this nature and was sneered at and joked at like I was from another planet!

When are we going to wake up and start marketing our wheat in a professional manner that produces profitable results?

[AdamSmith]

Vader, just curious here, what percentage of feed grains grown in the desegnated area in 2004 was sold into the export market via the CWB?

You missed my point entirely.

Yes I'm sure you sold 100% of what was offered but what was offered was a pitance of what was there to be exported and should have been exported.

Do you think MORE or LESS feed grain would have been exported in 2004 if we had an open market in feed grains?

MORE or LESS ???


And by the way, don't give us any price premium crap, because we all know that the CWB gets zero premium for feed grains. Even the CWB's own commisioned studies have said that.

So were stuck with a huge amount of 2004 feed grain carry over. I suppose this is great for the cattlemen and the hog farmer but it is bordering on disaster for the grain farmer.

I just find it so irresponsible for the feds and the CWB to continue to promote us growing low yielding high quality milling wheat and when nature turns it into feed, they just look the other way.

[silverback]

But the one line he said was "the PRO's are market signals - pay attention!"

If that is true, then I guess some of us will just hand the keys back to the banks, fertilizer dealers, seed dealers, fuel dealers, machinery dealers, etc..., because the pro's are saying to me "you were stupid to try and grow grain this year and you would be stupid to try again next year!"

Surely it is our own fault for getting to this point somehow isn't it??

The colonies seem to be able to keep expanding, maybe I will just see if they need more land. They are good CWB producers aren't they?

[TOM4CWB]

Silverback;

Most I know avoid the CWB like the plague.

How we Import 10.9Billion per year of US Ag products must leave some room for us somewhere?