Feed Barley Basis Levels

[rain]

Has anyone heard what the feed barley basis levels are delivered to either Lethbridge or Calgary for Spot and December delivery

[charliep]

I will add the question about who all is getting offered special deals for feed barley? My understanding is at least some grain companies (Alberta) are offering $3/bu early payment option on feed barley. The math doesn't work so there are obviously some deals being cut somewhere between the CWB and the grain companies

[charliep]

The above is a CWB delivery using the guaranteed delivery contact and an early payment option.

Tried to find a Portland price but can't. Recent prices have been over Cdn $200/tonne in store Vancouver. Shortages Australia plus small North American crops have Japan hunting hard to find feed barley/paying up. I don't even want to comment on the issues plaguing the malt industry (documented before in the threads).

[TOM4CWB]

Charlie;

$161US/t for #2 Barley Portland Oct 31/06.

Here is the DTN report:

"Barley...USDA reported the first shipment of barley for Japan off the west coast last week, with nearly 1 mb of the 7.5 mb in outstanding sales loaded. Total US barley shipments for the year stand at 4.1 mb compared to 17.3 mb a year ago."

We know how the CWB will compete in this market... right?

Reverse Tender... the trade offers the CWB barley above the initial... through the tendering process. Then growers just get a BIG trucking allowance.

Kind of makes a farce of the whole CWB system... doesn't it?

[rain]

Spot bids Calgary region appear 20 to 30 under delivered.
Calgary region unpriced basis FOB bin 20 Under. How many guys will let the futures run and loose out on the basis. I tried bringing this up months ago the only person who replied informed me corn would replace barley.

It would really be nice if you guys could taLK ABOUT SOMETHING OTHER THEN THE CWB

[charliep]

Didn't mean to turn into a CWB issue. Perhaps an interesting point is that $3/bu ($138/tonne) money in a farmers pocket is a reality in at least some select elevators for CWB feed barley. That number would be $34 under the Dec/$40 under the March. This price is fully supported by west coast feed barley prices. A caveat is that the Ukraine has stopped grain exports because of their drought but there is at least some indication they have adequate supplies feed barley/will resume again. The major issues in eastern Europe have been this past seasons winter wheat crop with lesser impacts on spring crops.

What delivery period is the $20/tonne under for? Picked up yard or delivered feedlot? If you could negotiate $20 under the March, that would give close to the $3.50/bu that WRAPper has talked about.

The other basis I might watch is corn. My understanding is landed Alberta corn basis is extremely wide reflecting the impact US ethanol plants in the northern states. Where you might have used 25 to 35 cents over CBT corn futures, now the value is more likely 60 over. Landed Alberta US corn prices would be extremely expensive.

What are those in Manitoba seeing? Are Manitoba hog barns buying US? What price?

[wd9]

Charlie, if you have 50 lb barley and less than 2% other grains inc, you can do better than 3 bucks off farm. Demand is high, stocks are low, and realization is hitting.

That old question again I asked 2 months ago, feed or malt? I may have to send in a damped and germed sample to get out of the "selection" contract! This is way more fun than last year.

[TOM4CWB]

WD9;

Are you suggesting that growers do the same thing to Maltsters that...

Maltsters have been doing to growers?

How can that be fair?

This system will never survive as we know it today... and the CWB has known this for some time.


How long will it be till we wake up and smell the coffee!