Deadline Today for CWB Feed Wheat Guaranteed Delivery Contract

[charliep]

Just a note today is a deadline for the CWB Guaranteed Delivery Contract for feed wheat. Hard to recommend selling feed wheat for less than $2/bu. The note is simply to get everyone looking at their marketing plan and considering this alternative given quantity of feed wheat farm managers have, other market alternatives, combination of moisture/temperature when went into bin/was piled, etc.

[sshiels]

there are better options every year than the board feed wheat program. Not to try and be a salesman here, but send your information on what you have and where to absbrokerage@sasktel.net
maybe they can help.

[silverback]

What is the initial on this? $.80 ? Potential net? $1.90 ? Nice.

[charliep]

Not promoting. Just highlighting a deadline and encouraging everyone with a big pile of Canada Feed with 15 % plus moisture to consider alternatives and develop a plan. Likely not the only GDC for feed wheat - South Korea/other countries are always there to buy feed wheat if the price is competitive with US corn.

Also encouraging the CWB to be more innovative in how they appproach feed wheat. This could be cash pricing within the current pooling system that would reflect a sales opportunity. It could be shorter pooling periods like they have done with feed barley. Could be innovative programs like the $2/bu price guarantee some grain companies offered farmers who signed CWB feed barley GDC contracts early this fall. Western Canada has a pile full of wheat wheat to deal with this year (including carryover from 2004/05).

[TOM4CWB]

Charlie;

I understand the CWB yesterday reopened the Contract 100% till January (or it is fully subscribed), is this correct?

It is interesting that the non-board feed wheat basis has tightened about 20 cents a bu. in the last couple of days in AB.

What are others seeing?

Will the peak be Dec. 14/2005, just before the Corn tariff goes on?