why not market 3HRS into USA?

[Ron]

Why doesnt the cwb when they screw us into keeping 50% of our 3 red (or durum) let us move this unwanted grain straight across the border? Sell into the spot US market shouldnt confuse the US into dumping below cost of production if we are selling to them?
Just saw the 20% contract call for 1 and 2RS 13.5%and higher and am wondering if we will get screwed on last years crop AGAIN.

[cropduster]

Maybe they want the good stuff so they won`t have to pull it from the St.Lawerence.Funny...I know there`s lots of good stuff out here,they just need to get their cheque books out!

[charliep]

Thought I would be a note in to highlight the CWB has updated their historical DPC and FPC.

http://www.cwb.ca/public/en/contracts/ppo_workbook/pdf/2006_07_dpc_charts.pdf

I note this and relate to the question at the top by noting the substantial premium the daily pricing contract for all the classes related to KCBT (CPSR/W and CWRW) over both the PRO and the FPC. If you want to work through the spreads for 3CWRS, you can see some of the same factor. The spread on the July PRO (will change Thursday) between 1CWRS 13.5 and 3CWRS 13.0/3CWRS is $31 and $45/tonne respectively. The spreads for these same grades/proteins is $21 and $33/tonne respectively.

I raise the issue because the DPC is supposed to reflect US markets. The market signal I see supports your question.

[charliep]

I am going to leave comments till Thursday when the August PRO is released but there are some interesting spread relationships between current initial payments, the July PRO and the US values as reflected in the DPC. These spread relationships should signal which grades to apply against fixed price contracts and how quickly you want to get them priced out.