Deciding on the CWB

[Jman]

Almoy: are you sure your wheat is really no.1 or is the company buying your no.2 wheat as no.1? It could be that your local company may have tendered this grain for later delivery, therefore dont want you to deliver until the tender is required. Just a guess on my part. It seems strange that we cannot move high quality wheat this late into the crop year.

[Jman]

Parsley: I can see your frustration, but this is 4 examples out of potentially 1000's. I know of some guys who did buy backs on red winter a couple of years ago, and they actually made money on the buyback, due to how they timed the markets. And like you, I know of some fellows who did the buy back at the wrong time.

[MBFarmer1]

Thanks for all the great replies guys. Chaffmeister, am reading through the report on choice matters interesting stuff. As far as the buyback goes I have had only one indirect experience and that was quite a number of years ago when fusarium first arrived in MB. The CWB basically could not sell our wheat and told us to pretty much do whatever we wanted with it. We hauled our entire crop just across the line and actually did very well with it vs. getting almost nothing. The onyl difficulties were a "5 dollar per load cash only" fee to US border security. That seemed a little fishy but everyone that was hauling paid it.
Charile, as for what I want in the future.....obviously farms will continue to get much bigger I feel farmers will be hiring more and more porfessional marketing consultants and possibly working together to blend their products, clean them and ship large lots on their own. Basically working to cut out the middleman (line companies). TO accomplish this we need to plug into the markets omehow to learn what is needed out there and make the connections required. Is this the role for a new CWB that is a privately owned company? Maybe?

[almoy]

Graded No 1 by the Grain Commission. They are only buying No 2 & 3 in this area. We have sold some No 2.

[parsley]

Jman,

I could give you so many examples,I could fill pages, but I did chose these few, because I extracted them from the already public domain.

An egregious point is that most of the organic buyback profit ends up in a conventional pool, which a lot of organics cannot access because they do not have permit books.

The second and most important point is that organic growers outside the DA can forward CONTRACT for a year ahead, without fear of a miscalculated buyback disaster.

The CWB have done everything they can to ruin organic profits.

You would think they would be glad to get organic grain out of the country, and Vader has been moaning about overproduction. Permiting traceable amounts of grain to bypass the already overburdened system, helps everyone.

Reasoning with posts become frustrating.

Parsley

[almoy]

Lahenheath, haven't had chance to look at latest pro's did they drop again?

[lakenheath]

They sure did. And at this point, any drop is very substantial.

[lakenheath]

On average about 11 cents on Durum and about 5 cents on Hard Red Spring. I am scared to see what the new crop PRO's bring to the table.

I have hunch that the pea and lentil market (which they claim is currently flooded) is going to be drowned this coming year.

[lakenheath]

I don't even know what to say anymore. We have a lot of guys around here who turned down decent feed prices because the CWB pro was higher, now since christmas if they dropped another $0.05/bus on hard red, that would mean that a hard red #3 with 12 protein is at 2.65/bus. Why am I selling to the CWB? Bad thing is though I can't get out my A series anymore so I'm stuck with them, when I could get more for feed. If the CWB has our best interest at heart shouldn't they be letting guys out of contracts if they can make more money else where?

[lakenheath]

I more thing, bet guys are kicking their buts that didn't sign an EPO.

[lakenheath]

An EPO is no good if you can't haul though.

[lakenheath]

Lakenheath, you guys haven't moved any wheat yet since harvest??

[chaffmeister]

Hey guys – educate me. The current PRO for #1CWRS 13.5 is about $6-7 above the PRO last spring (just before you were seeding). If it doesn’t pencil a profit now, it sure as hell didn’t then. Could it be that you assume the PRO will improve over the crop year (which it tends to do, with some exceptions)? So, even though it’s slightly higher now, you were expecting more?

[lakenheath]

Actually you are wrong. They were 10 cents a bushel higher last spring. But last spring fertilizer was also significantly lower. Sure, we all hope like hell that the PRO's will come up, but you can't rely on hope only. You need to pencil a plan. Right now an average crop of #1 CWRS 12.5 protein would lose me about $6.00 bushel on rented land.

[melvill]

Myabe one of the best lessons to come from this delivery problem is that a Fixed Price and/or Basis Contract means guaranteed delivery by the end of the crop year. Yes, the end of July is a long way off but . . . .