"The Wheat Board Clucks Again."

[parsley]

A farm voice with an educated and knowledgeable vibrato delivering a refreshed page of Canadian Wheat Board economic study is bound to cause a spectacle. It did.

Like clucking chickens, the Wheat Board engaged a full public relations assault on Richard Pedde, an Indian Head, Saskatchewan farmer and former derivatives trader, to refute the study Pedde and Sylvain Charlebois collaborated on, an economic study with the purpose of reforming the CWB so that the Wheat Board would deliver transparency, accountability and good governance. Such an extreme vision, isn't it (tic)? Sigh<a href=”http://www.parsleysnotebook.blogspot.com/”target=”blank”> Click Here to Visit Parsley’s Notebook Blog to Read More. </a

[GrainBeetle]

I thought joedales set up a blog site for you so that you would stop cluttering this site with your trash and wasted bandwidth for those with slow dialup service?

I guess no one is visiting your nutty blog.

Earth calling Parsley.. do you copy...dassiaitnemed.

[parsley]

I'm following instructions. Pars

[GrainBeetle]

Who did R. Pedde work for in NYC? Are they still in business? How many of his NYC collegues jumped out of their high-rise buildings following the financial crisis that THEY caused.

Now he blames the CWB?

[GrainBeetle]

Parsley:

As you stated, Pedde traded "derivatives". Well derivatives are what caused the financial meltdown in the US and abroad. These products were nothing more than pyramid schemes.

Is this what the grain industry needs?

Geez, with the likes of Richard Pedde and Gerry Ritz (former Pyramid scheme vitim - Ostrich Farmer) influencing western Canadian Ag Policy, we are all in big trouble!

I wonder what a breeding pair cost him?

[agstar77]

ABH AMRO ,which he sued for improper dismissal.

[furrowtickler]

Grain bug, what is a vitim?

[parsley]

It's not surprising the way you are prepared to shred a fellow farmer apart for writing a report on the CWB. It's such a closed-mind 'hold the fort' attitude. So small.

The guy had a job in his former life. So what? Didn't you? Criticize his report, not him, or who his past employer was. Next you'll be claining his kids play banjoes. Scheechz.

[TOM4CWB]

Earth Calling GrainBeetle;

Do you own this thread?

If you don't like Parsleys posts... just don't respond... and the site capacity will not be used on your posts complaining about her postings.

But I know.. that is not why you are really complaining... it is obvious why you do this... intimidation... and all the other favorite CWB tactics to get us to be quiet about the huge mess the 'single desk' has made of marketing our board grains.

Once again... in the month of November 2008... CWB prices for Spring wheat are close to $100/tCDN below US farm gate prices just south of the 49th.

The CWB has failed... you know it... and that is why you attack the author instead of the study.

[parsley]

Here's what Pedde and his compatriot calculated:

Daily Price Contract for 2005-2007: cCompared to U.S.,CWB performance for an average farmer, delivering approx 700 tonnes/yr to the Board would rack up a loss of $18,000 per year.

Nice bit of cash? Pars

[TOM4CWB]

Parsley,

Every one who is stuck with these foolish PPO's knows the FPC/BPC are $30-40/t lower priced than the DPC.

PLUS... we are supposed to get a PREMIUM over DNS... in the first place!

Grainbeetle... the CWB has a massive problem here... why on earth would you defend the failure of this system?

[agstar77]

Pedde's compatriot also said the CWB critique was valid . His concern was the transparency of their operation.

[parsley]

Then why the full force of the Board squawking like chickens in every media outlet if they were not alarmed? Needed a break from their roost?

[parsley]

A snippet from the NFU letter regarding MNP/Election:

Ian Craven tells me that MNP has no intention of publicizing the change. As well, MNP has no intention of any direct communication with the people kicked off of the list. So, MNP is communicating with the people still on the list, Minister Ritz has sent letters to an unspecified number of farmers hoping to generate more anti-CWB votes, but no one has had any direct communication with the farmers most affected by Ritz’s change—the ones kicked off of the list.

Now it gets more interesting, because the “no one” referred to in the last sentence includes the CWB. I am going to try to have a conversation with Ian White at the CWB early Friday morning to chase this around again, but this is where I am requesting action from you and all your friends.<a href=”http://www.parsleysnotebook.blogspot.com/”target=”blank”> Click Here to Visit Parsley’s Notebook Blog to Read More. </a>

[classicalliberal]

The definition of derivatives is financial instruments created by market participants so they can trade and/or manage more easily the asset upon which these instruments are based. Their values are derived solely from an underlying interest which may be a commodity such as wheat or a financial product such as a bond or stock, a foreign currency, or an econmic/stock index. The current financial crises is caused to some degree by the subprime mortgage crises which is where banks and lender were lending money to those with bad credit because they were speculating that the asset value (house) would be worth more if they defaulted. Loan securitization is when banks bundle up loans and other interest paying securities and sell it in the over-the-counter markets to get the loans off their books. Companies like Moody's who are supposed to rank the various securities in terms of their credit risk did a poor job of analysing the risks associated and then the people of bad credit started defaulting and there was a large supply of forclosed homes on the market which has brought the housing prices down significantly in the US. Derivatives have been around since the 1850 with the Chicago Board of Trade and they significantly reduce the costs of doing business because risk can be transfered to those who are willing to take it, like $7 corn futures as an example. no end user wants to buy corn that high, but some speculator might and thus you can hedge corn production at around $7 per bushel when the cash market doesn't want it. Derivatives are an excellent tool and unfortunately have a bad rap now but it is not necessarily the fault of the derivatives.