CWB Rejects all 3Red Wheat

[TOM4CWB]

Charlie,

I find it simply amazing the CWB stooped to this level... and refused acceptance of 3Red Wheat offered them.

Does the CWB think they can hold up the medium quality wheat market... globally... at the historic high levels we are offered now... by refusing to accept or sell the 3red wheat uncommitted to them on the "A" and "B" series contracts?

What are these dreamers up to?

It will certainly cause nightmares for some of us...

Payback to Supplymanagement, Livestock, and Ethanol producers; Lower feed grain prices are the only result!

Who out there really believes this has anything to do with maximising the value of "designated area" grain grower's grain?

Looks like the CWB & Chairman Ritter just brought out the "Gun" as a smile was not enough for them!

[Ron]

do you mean there is no acceptance on series C?

[Ron]

yup it does (just looked at cwb site). gotta watch the gaame and drink more rye. i will complain later

[TOM4CWB]

Ron,

I see the US Wheat Associates reports this:

"USDA reports released last week revised U.S. 2006/07 production down again, now anticipated to be 8 MMT or 14 percent below the 2005/06 harvest. A weak outlook for production in other major producing countries is expected to send world stocks to the lowest level in 25 years and the world stocks-to-use ratio to the lowest level reported by USDA. In the June release of its World Agricultural Supply and Demand Estimates (WASDE), USDA forecasts the marketing year weighted average farm gate price in the U.S. to rise from $3.42/bushel ($126/MT) to a range of $3.60 - $4.20/bushel ($132 - $152/MT).

In its crop production report USDA’s National Agriculture Statistics Service downgraded production estimates for the current HRW harvest by another 8 percent, now estimated 29 percent lower than last year’s crop. The drought’s devastation is forecast to lead to production declines in Kansas of 23 percent (2.4 MMT), Oklahoma by 47 percent (1.6 MMT) and Texas by 66 percent (1.7 MMT). Lack of rain has also led to year over year crop declines in Montana of 19 percent (500,000 MT), Nebraska of 18 percent (300,000 MT) and Colorado of 13 percent (200,000 MT)."

On Winter Wheat and Durum;

Hard red winter wheat sales were up 11 percent, and durum sales were 35 percent higher than 2004/05."

Why on earth is our CPS/HRW worth $1/bu less than HRS... when they are close to par in the US gulf and PNW?

[TOM4CWB]

From the CWB web site:

Series C
June 16 , 2006
100% Most classes and grades classes of wheat, except No. 3 Canada Western Red Spring.
0% No. 3 Canada Western Red Spring wheat.
25% All classes and grades of Canada Western Amber Durum.

[Ron]

I cant even bitch about it I am so #$^%#%^%$ tired of the CWB. I guess I am finally getting used to it (hope in another 10 years I am not starting to like it though)
Happy fathers day I am going to buy a case of beer and do some bonding/bitching with my dad.

[charliep]

Would agree there needs to be processes to allow farmers to clear bins at the end of the crop year. Decision to carry inventory should be a farmer decision - not a CWB one. This would have to be backed up by cash pricing at the end of the year or a separate pricing pool on the "C" series (as suggested by Vader). Higher quality wheat for specified customers (i.e. Japan) does need to be carried but should be held up storage contracts where farmers are paid interest/storage similar to malt barley/identity preserved wheat. All these can be done within the current pooling system.

Interesting this posting ties into the new announcement about making delivery opportunities a tradeable commodity. Will post a separate question but this question is definitely tied to this new program.

What are others thoughts?

[silverback]

Just reading my nice little brochure from Ken Ritter and his boys and girls.

It sure is nice to know how happy we are with the way things are going.

I wonder how long ago they knew that there would be no more call for a 3 red? Could it be that they unleashed this survey ahead of the day when they would have to let us know?

What a great system it is. It is good to know that they worked as hard as they could to market our grain around the world and that it is much better for us to sit on it until they decide the time is right - whenever that is.

I sure am glad those evil corporations aren't able to try and buy our grain to get to customers they might know of.

Anyone need someone to wash their windows? Truck? Cow?