What percentage of feed barley do you sell to the CWB

[craig]

I thought it might be an interesting exercise to see what percentage of feed barley sales go to the board. I know what happens in my area but curious to see what happens in other areas.

[TOM4CWB]

Craig,

It has been over 10 years since we have shipped the CWB barley. We grow seed barley and have found no reason to take a discount price... especially when we have our own trucks to arbitage the market on feed.

The swapping with stocks that goes on really distorts the feed barley in western Canada... I wonder how many people know how much switching goes on... and what it costs the CWB?

[FarmRanger]

Hmm, let's see, sell it to the board for a buck less than the feeder down the road.

I think the percentage is pretty low down here in southern Alberta.

[BennyHin]

Feed barley is a good example of "Dual Marketing", where both the non-boards and the board can both market the same commodity. This "dual marketing" doesn't result in driving up farmers bid prices, all it will do is remove the CWB completely from the scene. Then non-board bids will not even have to consider pricing themselves competitively to CWB initials(or PRO's) for such grades as 3 red spring, feed barley and 4 and 5 CWAD. These spot values will tank.

[BennyHin]

Tom:
Are you saying these big nasty grain companies are making too much money? I thought that the revenue they earned thru stock switching allowed them the ability to compete among each other via higher non-board (and board) barley bids in terms of higher spot prices or $20/tonne trucking premiums?

[Ron]

BennyHinn
Are you high?

Feed barley is a good example of "Dual Marketing", where both the non-boards and the board can both market the same commodity. This "dual marketing" doesn't result in driving up farmers bid prices, all it will do is remove the CWB completely from the scene. Then non-board bids will not even have to consider pricing themselves competitively to CWB initials(or PRO's) for such grades as 3 red spring, feed barley and 4 and 5 CWAD. These spot values will tank.


Why is the non-board higher than the board? Without the feed barley market the CWB wouldnt even be doing the crappy marketing job they are now for malt.
I really cant understand how your argument works.

[BennyHin]

ron why do you think the cwb doesnt sell or cant sell into the domestic feed barley market?

ron how much designated barley do the canadian malsters buy each yr?

how much of this is later exported as malt barley?

what is the total size of the designated barley pools [with respect to total domestic demand ]

what is the average international designated barley price year to date, with respect to the cwb pool return?

[BennyHin]

yeh hah, ridem cowboy.

[Ron]

I started to reply but to hell with it. You are a PRO CWB cult member and I wont bother trying to reason with you. The bottom line is since 1992 I have never seen a CWB feed barley price higher than the non-board price (whoops, the cash barley market tanked when the CWB jerked out the intercontinental barley market in 1993 for a couple weeks was the same as the initial payment then sanity prevailed)

[charliep]

ron why do you think the cwb doesnt sell or cant sell into the domestic feed barley market? NO IDEA. HELP US OUT. MAYBE BECAUSE FARMERS DON'T CONTRACT WITH THE CWB BECAUSE OF LOW INITIAL PAYMENTS/UNCOMPETIIVE PAYMENTS RELATIVE TO DOMESTIC FEED GRAIN PRICES. HARD TO SELL SOMETHING YOU DON'T HAVE OR TO QUOTE A BOSS TO A SENIOR TRADER AFTER THEY SHORTED THE FLAX MARKET WITH NO ELEVATOR INVENTORY - NEVER SELL OUT OF AN EMPTY WAGON.

ron how much designated barley do the canadian malsters buy each yr? JUST UNDER 1 MILLION TONNES

how much of this is later exported as malt barley? MY ASSUMPTION IS NONE BUT YOUR ANSWER WOULD SEEM TO INDICATE SOMETHING ELSE. SHARE.

what is the total size of the designated barley pools [with respect to total domestic demand ] THE DESIGNATED BARLEY POOL IS NORMALLY ABOUT 2 MILLION TONNES OUT OF TOTAL CONSUMPTION OF 12 TO 13 MILLION TONNES.

what is the average international designated barley price year to date, with respect to the cwb pool return? DON'T KNOW THE INTERNATIONAL AVERAGE BUT CAN COMPARE TO OTHER MARKETS. SEE BELOW FOR MONTANA BARLEY PRICES.

http://www.choicematters.gov.ab.ca

IF THERE ARE GRAPHS AVAILABLE THAT WOULD DEMONSTRATE CWB PRICING/PERFORMANCE TO DATE, I WOULD ENCOURAGE YOU TO POST THE LINK.

BENNYHIN - HOW MUCH BARLEY DO YOU CONTRACT WITH THE CWB?