CWB not mentioned in India Sales

[TOM4CWB]

Incognito;

I find it interesting; but odd, that the CWB is not mentioned in the wheat sale to India this week!

Were the CWB NOT involved?

"CANADA GETS HUGE CHUNK OF INDIA WHEAT DEAL

Canada will supply nearly half of the 2.2 million tonnes of wheat that India bought on Wednesday, reports Reuters.

About 1.02 million tonnes of Canadian wheat is expected to arrive in India between September and January, which will mark Canada's first sale to India in about 10 years, traders said.

ADM will ship about 300,000 tonnes of soft red winter wheat from eastern Canada, traders said.

Toepfer International will ship 720,000 tonnes, some of it from western Canada, says Reuters."

What is this all about?

[TOM4CWB]

What prices were these wheat sales made at? Were they flat priced... or basis sales... what are the delivery periods?

[AdamSmith]

Tom,
I found this on the web, and it does say the CWB sold the wheat



India buys 1 million tonnes of Canadian wheat
Last Updated Fri, 30 Jun 2006 10:56:50 EDT
CBC News
India has bought more than one million tonnes of wheat in its biggest purchase from Canada in more than 10 years.

Farmers welcome the sale to India in what should be a bumper year for the Canadian wheat crop. (Canadian Press) The Canadian Wheat Board has sold 720,000 tonnes of hard Prairie wheat to India, while the Ontario Wheat Producers' Marketing Board will sell 300,000 tonnes of mainly soft Ontario wheat.

"It's a good sale," said CWB spokeswoman Maureen Fitzhenry, adding that the deal confirmed Thursday is welcome news for Prairie growers, who harvested a large crop last year.

The price of the wheat was not disclosed, but the top grades of western wheat were selling for about $235 a tonne Thursday. Lower grades were fetching about $100 a tonne.

Hard prairie wheat is typically used to bake Canadian-style white bread, while soft Ontario wheat is used for many Asian-style breads.

India has imported very little Canadian wheat in recent years.

"They've even been an exporter of wheat from time to time," Fitzhenry said, "so the fact that they've entered the market with some demand this year has been significant."

Rick Steinke, director of market analysis with the Canadian Wheat Board, told the Canadian Press that India has experienced poor growing conditions the past two seasons and its wheat stocks have fallen.

"Those [Indian government] stocks have been constantly declining [and] they haven't been able to procure enough of their own domestic wheat crop," Steinke said, "so they're now on the world market buying some wheat, so it's good news."

Steinke said India has imported 3.5 million tonnes of wheat from all sources so far this year, its highest level of imports since 1982-83, when it bought 4.3 million tones on the world market.

[AdamSmith]

So how come a voluntary Ontario Wheat Board can execute a major export sale of wheat yet the CWB says they couldn't compete against the gastly multi-nationals.

And what's this garbage about lower quality winter wheat being worth $100/tonne less than red spring. I guess the pea brain who filed this story hasn't ever heard of the Kansas City Grain Exchange or the Chicago Board of Trade or checking out real cash trades vs bogus CWB prices.

I'd be damn curious to find out what the OWB sold the winter wheat for.

[TOM4CWB]

Thanks for the info... I hope it is good news!

[clancey]

The CWB was not the seller. It was sold by an international grain company, which bought the wheat from the CWB. The trading level on the 2.2 million MT of wheat was between U.S. $196 and $205 MT C F Indian ports

[charliep]

Any thoughts on the ocean freight cost west coast to India?

Assuming US $50/tonne ocean freight and $10 or so Vancouver elevation/cleaning/weighing inspection, the net result would be a price of around US $140/tonne or Cdn $ 155/tonne.

Gulf price for HRW is about US $210/tonne. Need to know a lot more informatio about type/quality before any other comments on price can be made.

[TOM4CWB]

Charlie;

No wonder India bought the wheat from Canada.

How can anyone claim the "single desk" extracts a premium... when the CWB doesn't have to bid the grain out of the hands of growers... the monopoly takes it.

Upside... this should clear a big chunk of 3red out of the system.

I see brown patches showing up in wheat fields on sandy spots from the highway at 100km/hr.

It needs to rain soon!

[crusher]

I saw the same thing. I'll take twenty percent less crop with a twenty five percent upswing in price. We're still drying grain from last year and still don't have much for sales. Need a rally reeeal soon!