Price Guarantees on CWB Guaranteed Delivery Feed Barley Contracts

[charliep]

Sources tell me some grain companies are offering price/payment guarantees on CWB feed barley GDC contracts? Is anyone gettng offered these? Are any of the grain companies putting any bells and whistles (quaranteed prices, freight incentives, etc.) on the CWB feed wheat GDC programs?

[charliep]

Question/challenge under current system.

If these types of feed barley programs are being offered, why won't the CWB be a port position buyer and allow grain companies to source from farmers using a daily cash price? Still single desk in export market. Price signals flow to farmers. Grain companies able to use operational efficiencies to capture margins (yes, they need profit)?

[crusher]

Agricore at Star has guaranteed $2.00 on all CWB Pool Series A offers. I haven't tracked feed wheat because the board/non board spread is too wide, plus I hope I can flog my wheat as a numbered grade.The strategy will probably mirror my 2004 plan, which left me with a bunch of wheat carryover.