Fixed Price= Pooled Price?

[Fransisco]

Was reading in the seducer that the CWB's fixed price contract has a pooled price componenent in it?

Anybody know what this is or how this works? I thought the price quoted was the price you got.

[BennyHin]

How is the pig basis calculated in Manitoba? Transparency, think not.

[just_wondering]

Here's another example of the aussies kicking our ass.
Imagine packaging Grain the way the customer wants it, rather than the "one size fits all" Canadian approach. Even when we did ship barley to the Aussies, we sent them our poorest quality stuff. I can't wait until August 1, 2007 when we can say to the World that Canada is now open for business.
We'll ship it to you however you like -- bags, containers, vessel, whatever. You tell us, you're the customer.

I realy like the idea of putting a Canadian Flag on the Bags. If you did not know the Bedouins are the Saudi Army's feet on the ground.

[lakenheath]

Good analogy Benny. Pigs vs Wheat. Basis vs something called a basis. I can't believe you can stick up for every damned thing that the board does. You tell me how the CWB basis make sense.

[Fransisco]

I just want to know what it has to do with the pool? Anyone?

[padron]

Smart move on the part of the Aussies to tie up one of the largest buyers with cold hard cash for the next 5 years. If anyone thinks the timing of this and the pending dual market on August 1 for Canadian barley is a coincidence you are dreaming. Sounds like there is still room for more volume to this customer and there are other international buyers including the USA. The best is yet to come for barley growers.

[Fransisco]

Has anybody gotten paid less than the quoted FPC price when all was said and done?

[btjadenlepp]

we've never been paid less than what the fpc we've locked in works out to. but you know, the timing of when you apply your deliveries to an fpc and cash out of the pools can very much affect your grade spread, as compared to leaving the same grade in the pool and waiting for the final payment on it. the spreads in the initials, say between a 1-13.5 and a 3, or 13.5 vs. 15.5 protein, are adjusted by around $20/t over the course of the year.

i can't find the article you're referring to. can you post the page and issue?

i've always treated premiums in the fpc over the pro as good sell opportunities, mainly because they don't last long.

[kamichel]

I think it just has something to do with how the basis is calculated in the first place, basis has a pooled component. But when you price then that is the price you get. Unless your delivery location changes the ellevation, cleaning, etc.

[charliep]

Fransisco

I think the Western Producer may have been referring to the adjustment factor. That is, the adjustment for wheat that has already been priced in the pools on the date you sign the contract (if after August 1).

[wilagro]

You guys are sucking slough water. By your postings, one would believe that the CWB did everything wrong and YOU guys are going to correct that situation after "Barley Freedom Day" arrives.

What a laugh...

[padron]

In respect to marketing grain, by all measures, the CWB did do everything wrong. Their returns were consistently at the bottom end of the trading range for barley year in and year out. They made very little attempt to market feed barley for export after losing the Saudi business and have alienated the domestic malting business through a regime of a "take it or leave it" mentality. If it weren't for the million or so tonnes of barley the CWB currently has sold to domestic maltsters - well below world values when everyone except them seemed to know the market had to move higher - there would be no support for retention of the CWB from them either. I can't think of one right move the CWB has made selling barley for western Canadian farmers. Not one.

[parsley]

Well said Padron

[malleefarmer]

According to chairman of ABB, stated on radio last thursday, its 2mill per year for five years and its a billion dollar deal. get your calculators out and divide tonnes into dollars.....sound so good now??
Also traders here in aust also sell grain into this market but openly admit they dont do tonnes cause bids by monopoly marketers alway undercut the price so they pass on the bussiness and the only suppliers willing to take lesser prices over a long term are monopoly marketers ie they just get rid of the grain at whatever price it takes to shift it.

If you guys are ever privy to barley tenders with about a dozen or so offers you will always see the ABB and CWB are the bottom 2 tender prices.

Anyway the year here in aust is going ok, getting a tad dry but good rain forecast this week

[just_wondering]

Mallee your comment on
only suppliers willing to take lesser prices over a long term are monopoly marketers ie they just get rid of the grain at whatever price it takes to shift it.
Is the best reason monopoly buyers don't work.
No cost of replacrement