No Cost Export Licenses for Malt.. To Germany

[TOM4CWB]

WRAPper...

THis is what I mean.

German Malt Barley shipment.

Loaded container Edmonton of Calgary...
CWB No COst Export License to grower;

About $5.25/bu.

Now, who should complain... if we could create this type of value?

[WRAPper]

I know I'm feeling a little frustrated myself tonight, ...trust me. You notice the article I put in the procon this morning that showed scottish farmers getting offered two year deals at around 4.59 canadian a bushel. I can see how someone can cherry pick the highs and ask why the board is doing so poor and be off base but where I see this I'm a little cranky. Heck it's only an extra grand or hundred a year to me. ( not sure though what they do for deductions but I'm assuming that price was delivered direct to the malthouse.

[WRAPper]

Show me your calculations to get that Tom are you talking FOB Edmonton or Vancouver and have you deducted frieght to germany or is the price you give net or gross.

[TOM4CWB]

WRAPper,

Ausie growers looking for no-cost export licenses...

PERTH, Oct 24, 2006 (AsiaPulse via COMTEX) -- "Treasurer Peter Costello has thrown his support behind West Australian (WA) wheat farmers wanting to bypass the disgraced monopoly exporter AWB (ASX:AWB) to sell their grain overseas at higher prices.

WA grain giant CBH today challenged AWB's monopoly with a bid to export two million tonnes of wheat for local growers, offering a return of about $A20 ($US15.11) per tonne more than AWB's estimated return.

AWB had been facing a grower backlash in the west, where wheat producers are angry that AWB, which has the monopoly on exporting Australian wheat, has forward-sold much of this year's crop for only $A245 a tonne, when the drought has forced prices past $A300 a tonne.

CBH Group chief executive Imre Mencshelyi said the group had opened its alternative wheat pool today to help growers maximise prices in a difficult season.

"CBH had been inundated with requests from local growers for an alternative marketing option for the export of WA wheat," he said.

Mr Mencshelyi said he hoped the Wheat Export Authority and AWB International, which still hold the right to veto bulk export licence applications, would consider the real value the opportunity represented for WA growers.

But AWB International chairman Ian Donges said AWB would review any bulk permit application to make sure it was in the best interest of all national pool participants.

He described CBH's offer as an "opportunistic ploy" designed to undermine the single desk by pulling volume out from the national pool.

"It aims to cherry pick selected international markets, in a period of drought, to benefit a few wheat growers at the expense of all pool participants," he said.

However, Mr Costello said WA farmers were entitled to feel hard done by with the prices AWB was securing for their produce.

"If you were a grower and somebody was offering you a higher price for your wheat than the law required you to sell it for, you'd probably be a bit upset by that," Mr Costello said.

"I think in those circumstances, and we're talking about West Australian wheat growers, they should be given the opportunity to test the market."

Mr Costello would not say the exporter's monopoly should be permanently scrapped.

But he said AWB had voluntarily given up its monopoly vetting power over a wheat sale to Iraq earlier this year after Iraqi authorities blacklisted AWB over the wheat kickbacks scandal.

"That was very much in the interests of growers."

Deputy Prime Minister Mark Vaile refused to say whether AWB should waive its veto to allow WA producers to sell their grain overseas.

But he said AWB should pay more for its wheat.

"The short-term solution to the problem ... is that competition prevail and the AWB lift what they're offering in the marketplace given the circumstances of short supply and much higher prices," Mr Vaile told reporters.

The government will consider the future of AWB's single desk after Commissioner Terence Cole hands down his report on the inquiry into almost $A300 million in kickbacks AWB paid to Saddam Hussein's regime."

(AAP)

[WRAPper]

Yes read that, had a talk with the maltster this morning in fact about that. And the fact that feed may very well outprice Malt in Canada this spring and thats direct delivery, VIP and protein premiums included.

[TOM4CWB]

WD9/WRAPper

THe CWB buyback to Germany is $245/t.
The Initial is $117/t.

$128/t cost to buy it back.

THe CWB PRO is $189/t, for a cost of $72/t - $1.56/bu to the pool.

Net of $3.69; Obviously not worth the risk of doing the business and the cost of loading the container.

Now there is the value of the CWB monopoly to the malsters... to KEEP the PRICE of barley DOWN.

[charliep]

I assume the $245 is Canadian currency and instore Vancouver.

I note this is likely a true reflection of the current value of a sale to Europe (they are short malt barley supplies). Prices also come close to reflecting what a maltster would pay today. We'll see what Thursday shows on the PRO.

Not addressed to either one of you (already know your ideas) but to others - what value does the CWB provide farmers who grow malt barley? Same qestion feed? Current feed barley prices Portland - Cdn $200/tonne or the same as the Sept. SS 2row malt PRO plus some extra for VIP, carry, low protein, etc.