CWB "Single Desk"Durum Prices

[TOM4CWB]

Charlie;

I am somewhat confused:

Atlantic Durum:
1 Durum $233.39/t
3 Durum $223.39/t

TBay Durum:
1 Durum $200.40/t
3 Durum $170.50/t

Why would the CWB charge $20/t less for #3 N.A./domestic durum than export durum?

Isn't the simplest for the "single desk" to extract a premium from domestic consumers?

I know that western CDN fertiliser producers have it down to a fine science... on how to extract the maximum from us "designated area" N consumers...

Right down to forcing N products to come the most expensive freight possible through the US Gulf coast instead of the Vancouver/Rupert route which would cut $50/t or more off N/P fertiliser prices.

So why must we buy our fertiliser Retail... and sell our wheat wholesale?

[charliep]

No idea. Is the Atlantic a real price that business occurs at or just a number the CWB floats? What markets would buy at this price? If you believe all the CWB posted prices, then I have some prime land to sell you in Florida (your neighbors will be crocodiles).

When I see a price, I also like to see a traded volume. Its like having a high price posted at the local feedmill but when you ask how much they would buy, the answer is none because they have all their sales booked or that it is the price they pay people who are buying processed feed from them already (justifys the feed mills high price for processed feeds).

[Incognito]

Parsley has the right reason for the inflated export price. Ask him, Tom.

[TOM4CWB]

Incognito;

The inflated price makes the Organic and Commercial growers pay more to get an export license for a #3? Is this what you meant?

[Incognito]

i'll let him respond but it is way beyond that...

[charliep]

I just phoned the CWB for the producer direct sale prices to get this market signal.

1CWAD 13 protein - $193.70/tonne port ($45.90 over initial). Current PRO - $194/tonne port.

1CWAD 11.5 protein - $183.60/tonne port ($50.60 over initial). Current pro - 180/tonne port.

3 CWAD (less that 12 protein) - $155/tonne port ($47 over initial). Current PRO - $153/tonne.

Current Montana durum prices (top grade/13 protein) about $3.50/bu or Cdn $150/tonne. Didn't look long but couldn't find a Minneapolis or N. Dakota quoted price.

[Borderrunner]

hmmm I don"t know but.....

[TOM4CWB]

Charlie;

The CWB has refused to take any Durum... except for #4&5 on a GDC contract... which cannot go through a Producer Direct Sale.

And the CWB will gladly take high quality durum... at a #4&5 price... if a farmer is despirate enough to sell it at the lower price... according to CWB staff at our accountability meetings on the 20th and again today.

Is this the new advanced CWB "single desk" at work?