"Intriguing" malt company pricing in the new crop,

[AdamSmith]

Oh glory hallaluya!, dawn is finally starting break, and with it the end of a long long bitter darkness.


06/05/2007 -- 15:02


WINNIPEG (Dow Jones)--



Western barley advanced on end user demand, with strong interest in the new crop. Besides feed lot interest, there was some "intriguing" malt company pricing in the new crop, brokers said.

"It looks like (maltsters) are finally accepting that the (Canadian Wheat Board) will be losing its control over the malt barley market with the new crop," a trader said.

[AdamSmith]

06/06/2007 -- 14:54


WINNIPEG (Dow Jones)--

Western barley held steady to a bit higher, ignoring weakness in CBOT grains. The lack of aggressive selling gave support in the moderate trade. End-user demand absorbed the available selling as participants are positioning themselves in the new crop ahead of the Canadian Wheat Board losing its monopoly control of the malt and export barley markets on Aug. 1.

Traders said some support also came from the idea that "no one knows what this stuff (new-crop barley) is really worth until the CWB loses its monopoly and we can trade freely," said a participant.

--------------------------------------

What a novel concept, discovering what barley is worth.

Instead of what we have had, which was ????

Clearly the CWB's price dicovery method was a little more than lacking, in fact the cwb's internal barley selling manual was titled "Barley Marketing For Dummies". They got hung up on the table of contents and decided to just wing it instead.

Uhm, uh , yeah, sure why not, $122 a tonne fob Vancouver seems ok to us, after all it's not like we have to cover our costs, it's not our malt barley, we just sell it, kinda on a forced consignment deal. Heck if $122 is too steep we'll take $118, we don't care, really, we just don't care.

[AdamSmith]

Barley futures bloom on rumours about monopoly's end
Reuters
Published: Friday, June 08, 2007
WINNIPEG - Barley futures at the Winnipeg Commodity Exchange set contract highs Thursday on rumours that Ottawa was set to dismantle the Canadian Wheat Board's barley monopoly earlier than Aug. 1, traders said.

The government was expected to make the CWB an optional marketing entity for barley sales to maltsters and export markets as early as June 15, some traders said, while others said talk centered around July 1.

"The government might be moving a lot sooner than people think on the date," a trader said.

The CWB, one of the world's largest grain sellers, focuses on wheat marketing, but barley sales accounted for about 11 percent of its $3.5 billion in revenue in the year ended July 31, 2006.

The Conservative government's plans to end the monopoly have been contentious, with some farmers looking forward to having the option to sell directly to buyers, and others decrying the loss of the "single desk" they say gives farmers marketing clout.

The CWB has said it may bow out of barley marketing if the government goes ahead with its plans, and has suggested the government could face legal challenges because of the change.

The government was considering a wide range of comments on its draft regulations, said Conrad Bellehumeur, a spokesman for Agriculture Minister Chuck Strahl.

Some industry groups want an earlier monopoly end-date, while some have said the government should postpone it for a year, and yet others have recommended the government stick with Aug. 1 -- the traditional start of the grain marketing year in Canada, Bellehumeur said.

One trader said Strahl was expected to make an announcement about the monopoly on Thursday or Friday, but Bellehumeur would not specify a date.

"The government will be making a decision shortly based on the recommendations by the minister, but we don't have an announcement to make today or tomorrow concerning barley marketing," Bellehumeur said.

The CWB has not been notified about any intention to move forward the date, a spokeswoman said.

New-crop barley futures have surged 13 per cent since May 22, with October barley reaching a contract high of $154.50 per tonne on Thursday and ending $3.30 higher at $154.

The market was also supported by an unconfirmed rumour that a cargo of new-crop barley was sold outside the auspices of the CWB for U.S. $194 per tonne free-on-board Vancouver.

[AdamSmith]

"The market was also supported by an unconfirmed rumour that a cargo of new-crop barley was sold outside the auspices of the CWB for U.S. $194 per tonne free-on-board Vancouver."

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I would be assuming this is a sale of feed barley?

Bottineau ND has a U.S.$ .40 per bushel premium on malt bids.

U.S $ 3.60 ($3.82 loonie)vs U.S $ 3.20 ($3.4 loonie)

It makes sense that feed buyers and sellers would be first in, the malties are probably still praying Strahl will do a Rosanna Rossana Danna, and just say NEVER MIND!

[JohnKenneth]

this trade is consistent with a bid we just got called about near regina - $3.10/bu delivered for off-combine. i'm using $65/t in deductions from FOB KV, which is about what it costs to move canola from here to port.

helluva sight better than the $2.60/bu the elevators around here have been paying for feed barley up until now.

[chaffmeister]

JohnKenneth:
I'd like to chat. Drop me a line at drooper409@hotmail.com

[padron]

FOB KV............now there's an acronym not many people use anymore. Where'd you get that one John Kenneth?

[rbrunel]

I just sold old crop barley @ $3.80 FOB farm to a maltster for feed. The Gov't need to come clear with it's plan, being in limbo is not good. That goes for CWB pro's or foes.

[rbrunel]

By the way, that is priced 200 miles north west of wpg

[Burbert]

Apparently uncertainty and confusion, will result in huge profits for Western Canadian farmers. Intriguing indeed!!!

[JohnKenneth]

i've been eyeing those ads from rahr malting in the paper with interest. is that who you sold to rbrunel? someone told me a rumour that there are brokers buying up uncommitted feed barley at malt prices as well, who are not licensed handlers of the cwb.

something's happening here, what it is ain't exactly clear... but it sure looks like marketing barley for domestic human consumption outside the cwb to me!

p.s. fob kv is fob vancouver for you young folks.

[AdamSmith]

Burbert, the only uncertainty and confusion involves the cwb. Will they challenge in court? Will they even try to market barley? What will they do? What will they do?

rbrunel's $3.80 a bushel isn't uncertain and confusing to him nor the buyer who he contracted with.

And yes that has made rbrunel rich, or at least a bit more richer than he would be had he surrendered his barley to the board.

But you know all this, you just post here to be an A-hole. On another thread someone commented that the cwb's initial was $.12/bushel last fall and a brain dead as you present yourself to be, I know you know that no one is going to get rich, as you like to refer to it from that, but that isn't what bothers you is it? Your skin crawls with envy at the thought of others being successful growing grain, selling grain, buying grain.

Quite honestly Burbert, your postings are the most childish I've ever read on agriville, but you know I actually hope you do keep posting because you prove without a shadow of any doubt to anyone who can understand the english lanquage what a useless bunch of people socialists are. You illustrate perfectly what's at the heart of the socialist mindset. You are a true died in the wool, anti-commerce, anti-freedom, anti-everything kind of guy. So keep posting and shine the light on your pathetic doom and gloom mindset. You do inspire people to become something totally opposite of who you are.

[rbrunel]

I sold to a trusted known Canadian Malting company who is expanding and buying old elevators in Manitoba. I won't disclose the name , but the contracted stated Canada #1 Feed, yadda yadda, $3.80 FOB farm. This is $0.15 less then I was going to get for it as raw seed before cleaning and royalties, unfortunately we had 5 wheat/kg 3 over the max. for #1 cert seed..