Canadian Barley Exports Suck!

[peaqueen]

It is interesting to note that small shippers get inquiries to export barley to clients in the USA and around the world.

Given the fact that the CWB system of accredited exporters prevents small shippers from the normal process of export trade applied to open market commodities this busines is not filled.

This is demand that although not huge could be an interesting part of the container trade from Canada.

CWB supporter and the like should insure small shippers can export, and not just the accredited exporters (who actually read like a whos who of multinational grain companies (but are these not he same guys we are worried would slaughter us in an open market? I digress.)

[parsley]

peaqueen,

About AE's.....what are the requirements for being an AE, and how does the CWB select from the applicants?

The CWB states:

"In any given year, the Canadian Wheat Board (CWB) markets over 20 million tonnes of grain to more than 70 countries. Total sales revenue for western Canadian wheat and barley reached $5.8 billion for the 1996-97 crop year."

Whoever can get a percentage of this action banks a grand holiday, peaqueen, agreed?


"Accredited exporters are national and multinational companies authorized to purchase grain from the CWB for resale to customers and other exporters."

So are there different resale prices for different EA's on the same day? Is the resale price transparent among ALL AE's?

"Many accredited exporters are tied into extensive sales networks and markets that complement the CWB's sales efforts. With branch offices scattered around the globe, these companies can make direct contact with customers in markets the CWB would have to travel to, thereby helping to reduce unnecessary expense."

So does that mean that the CWB choses an non-agricultural AE that is a dental distributor or say, a mining company?


"Accredited exporters also facilitate sales through freight sharing and acceptance of financial risk."

ACCEPTANCE OF FINANCIAL RISK....Now there's where the farmer's ear should perk up. What about an open, transparent listing of WHO the company is? I can find AU's financial sheets, but what about, say, Eagle Sterling?

"In addition, some buyers may present financial risks not acceptable to the CWB. Accredited exporters provide a valuable service by assuming this financial risk."

There. So why are the requirements safeguarding that AE's will not default, ARE NOT POSTED ON THE CWB WEBSITE? (Some AE's may present financial risks not acceptable to the farmer!)

"AEs are both Canadian and international, all of whom maintain a registered office in Western Canada."

Registerd with whom?


peaqueen, charliep, can you answer any of these questions?

Parsley

[charliep]

You can also get monthly export volumes by country from the CGC website. What it shows exports to Saudi Arabia and Iran are the major differences between the two crop years.

Parsley - I'll let you ask your question directly to the CWB in another thread. Rain has highlighted in the past how many threads get pulled off topic to overall CWB issues. The original thread has merit on its own.

[parsley]

Sorry charliep.

[rain]

Thanks Charlie.

You are right Charlie, more times then enough we get into a pro-wheatboard/anti-wheatboard bitch session in the commodity marketing section.

A producer in the Calgary region should have been able to price $3.75 FOB for Feed Barley in The Calgary region last week for June July pick up. That is $20.00 under FOB Bin.

Last fall I remember asking if anyone was taking basis for barley when everyone was getting so bullish barley. Dimes to Doughnuts know one did.

With a normal size crop in Canada next year we could see $2.25 to $2.75 barley

Look out guys history has a way of repeating itself.

With exports so far behind forecast at this point producers should be very very nervous.

Malt barley growers who do not normally sell into the feed market are at the most risk. Most have know idea of feed barley price history. I hope every CWB Malt grower who fudged his malt barley samples to get out of their contract gets burned. I have never seen a Feedmill, Feedlot, or Grain Company who bought too high try to get out of a contract. I have seem a few farmers try and walk on contracts however. I never liked working with grain producers, I alway liked the agribusiness people more.

[kamichel]

Sorry Rain I still cannot get into the CGC website. Still get porn. Are you sure the address is correct?

[kamichel]

I have not looked at that website yet but actually last year there was a massive feed export program last year. And also acres and yield are down this year.

[charliep]

Tried cutting/pasting and it works for me.

http://www.grainscanada.gc.ca/

If you are still having problems, try googling canadian grain commssion and move into from there. This is a site I would bookmark as contains a lot of usefull information.

[charliep]

Below is the supply demand I have put together. Look for others comments. I note we had a good discussion not to far back about the canola s & d as well as implications for the markets over the summer.

http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis5324

[kamichel]

Acres yield down, stocks to use extremely low. still looks good. Still cannot get into the cgc reports.