CWB "B" Series Barley Initial Payment

[charliep]

Just a note that the CWB announced an initial payment for "B" series feed barley of $72/tonne (port). This is about $63 % of the current "B" series PRO and about 35 % when converted to an elevator based payment in Alberta (23 % in Saskatchewan).

Portland price today is about US $5 hundred weight or CDN $125/tonne Vancouver (loaded vessel). The PRO is an accurate reflection of the market after you have knocked off terminal costs.

I have to ask the question why western Canada does not have daily pricing for feed wheat/barley? I don't care whether it is an open market or left to the CWB. If a CWB contract, I don't care whether a daily posted price at the elevator or a tendered price at port. Just put a price signal out that reflects a sales opportunity and let farmers make a decision.

[TOM4CWB]

Charlie;

It is all too obvious that barley MUST be an open market crop. CWB refusal to sell cash feed barley is key to requirements of deregulating the "single desk".

We have been refused even the most basic freedom... to keep CDN supply management and livestock farmers happy!

[crusher]

Subtract $51 for freight/elevation/cleaning, leaving $21 for the farmer. Subtract $8 for drying and you should see about 28 cents per bushel. Probably won't quite cover costs.

[charliep]

Not suggesting people run out and sign contracts. Only wanting the opportunity for price signals to reach farmers. This opportunity could be a customer with an immediate need (i.e. short), some factor that spooks the market (buyers want to secure supplies), grain companies willing to cut margins/provide services to move product or increase through put in their facilities, etc.

In the current environment, it would be tough to recommend signing one of the guaranteed delivery contracts with no commitment on price other than a lousy PRO.

I note the purpose of the guaranteed delivery contract is to signal sales potential with the CWB likely doing nothing unless farmers have signed the contract. So chicken and egg - sell first and hope farmers deliver or encourage farmer contracting and then make sales. It would be much better if these decisions could be made with a better link to the overall domestic feed market where this flow of information occurs efficiently everyday.