CWB Premium Myth

[padron]

My apologies Lifer. My response was directed at the scathing response I received from Burbert - not towards you. Your post got caught in between ours.

In response to your question the post from Chaffmeister is on the money. The spot price is true value. It may be negotiable from one buyer to another and from time to time depending on circumstances - supply and demand largely.

Forward prices tend to reflect the spot value plus the cost of carry - storage and interest - generally at commercial rates so their is an opportunity for farmers to get well paid for their on-farm storage.

This description is a truism for most grain traded around the world. The exception is pooled grain whereas the spot price and the forward price are generally the same. I like that the CWB finally started paying barley growers who carry their malt barley until later in the crop year but this premium is not market value and I don't think it is available for wheat (I stand to be corrected).

"Voting" with your seeded acres is one of the most significant things you can do to voice disapproval with a price - CWB or non board. But it's a long cycle and once you decide to plant a specific crop you're die is cast. The trend away from Board grains speaks volumes to me.

Once again I am sorry for the unintended slight.

[padron]

Lifer - as an aside I see Burbert's response has been lifted from the thread so it makes my response look even more inappropriate.

What more can I say? Sorry you took it as directed at you.

[charliep]

There have been a couple of postings removed from this thread. It has affected the flow of the thread and the references in the postings.

I can take the blame for this. Realize we are all adults/have relatively thick skins. There is a limit to what can be said here. That limit was hit here for me. Trying to keep the debates at a higher level/help someone in the middle make informed decisions is difficult and maybe not my job.

[wd9]

Good to be back, I missed all the fun!

Furrow tickler said less than $3 for malt, also after all the increases in un-contracted expenses in elevation and cleaning even 2 row in AB is around $2.80 and since many farmers did not deliver their malt contracts, the final payment is also affected, ie will be lower due to maltster penalties. It is easy to calculate, my cheque over tonnes delivered.

While speculation about whether there is a premium can certainly be made and phillosiphied over, Furrow and I got ripped. Also with the impending Aug 1 reg change, the saga would have continued with the board selling barley under priced to the maltsters to once again rip off malt growers for 08 to the tune of 50 million dollars which they will be sued for. Real numbers, not some belief or speculation.

Sticking to the facts will help this discussion immensely.

[Lifer]

Padron thanks for that. "Voting with the drill" as said by others is not just about a price for me. It's about being valued which price is a part of.

[Lifer]

"Believing in Rolf Penner and the tank, is pretty much like believing in the Titanic being unsinkable. Both beliefs require ignorance of reality and a belief in the Fairy Godmother."

Agstar you are correct in the above statement. Selling or marketing wheat is not about a belief system. Because you believe in the CWB system also does not mean there is more value in that system for all.

Penner points out a simple fact and gives information to back it up. I don't have to believe in him to believe him.

[Jay-mo]

Lifer, you hit it on the head!
Rolf and the FCPP are not coming up with their own numbers on this report. You can beleive whatever you want about the Rolf Penner the FCPP, the CWB, etc but look at it for yourself. The prices used in this article are out there for anyone to double-check for themselves.
Like someone else posted, the horrible job the CWB has been doing is something most farmers have been aware of for years, its the general public that needs to be informed on these outrageous price discrepencies.

[TOM4CWB]

Dear Charlie,

Thanks for taking on the tuff end of the Agri-ville responsibilities... Being a Cop in cyber-space is like being a target in a charity dunk tank event on a cold day!

When your body hits that cold water... it always makes you feel that being somewhere else would be more comfortable/fun at that moment!

Thanks again for trying to keep us on the straight and level above the tree line!

Sincerely,
TJ

[chaffmeister]

Further to padron's comment: <i>I like that the CWB finally started paying barley growers who carry their malt barley until later in the crop year but this premium is not market value and I don't think it is available for wheat (I stand to be corrected)</i>.

I agree - finally some semblance of market structures. <b>BUT</b> we need to remember that this is still a pool. If they are tacking on premiums for later delivery, they're coming straight out of the pool - and the early deliverers are paying for it.

Seems every time you turn around the notion of the pool being equitable gets further and further eroded......