Wheat Board Lovers

[silverback]

In case you supporters of the cwb care to look the annual report has just been released for the corp.

Can any of you please read it and some of the other posts from Tom, Charlie, and others and tell us where you stand on it?

Please now point out to us the highlights and performance benefits this has gotten us western farmers.

Please do avoid the "tough year" argument and give us a well thought out and logical analysis of the report itself.

[furrowtickler]

Agstar - burbot - not a peep eh? Cat got your tounge?

[Hopperbin]

Your not asking for Burbert's opinion are you?

[silverback]

I can never understand burby, but if he wants to take a crack at it that is fine.

I know there are at least 3 farmers who should be able to write in to tell us what this annual report shows them. I read their beautiful stories in the report. I especially like the one about the young bachelor who obviously is quite proud how he handles marketing his non board crops but then says the board is full of people much smarter than him to sell his durum.

[TOM4CWB]

Silverback,

Do you understand page 45?

Sales price comparison2 compared to competitors’ values for wheat, Designated barley and durum

Net per-tonne price spread realized by the CWB November 2007 Wheat Target – $6.90 Wheat [Result] – $13.81

Net per-tonne price spread realized by the CWB November 2007 Durum Target – $24.50
Durum Result – $48.84

Net per-tonne price spread realized by the CWB November 2007 Designated barley Target– $33.70
Designated barley Result– $29.47

"2 Sales price comparison targets for 2007-08 were set in November 2007 in an environment of unexpectedly tight supplies of quality wheat and durum and rapidly
escalating prices as buyers chased those tight supplies. The targets that were established at that time far exceeded historical targets and results for this measure.
In the months following, stocks tightened further and prices continued to escalate, during which time the CWB was able to leverage the single desk to increase the
sales spread well beyond the forecast. This resulted in a significantly larger weighted sales spread for wheat and durum than expected.
Designated barley results were slightly below target, mainly due to higher demand and a high price structure that was favourable to the overall return to pool.
In other words, CWB sold more tonnage into the 2007-08 pool than anticipated, increasing from a pool size of 2.2 million tonnes to 2.445 million tonnes. When the
targets were set, the CWB anticipated that it would sell approximately 170 000 more tonnes to fully cover the pool and achieve an average spread premium of $6.
In fact, over 415 000 additional tonnes were sold at an average premium more than $10.
It should be noted that the maximization of the net price spread does not drive the overall CWB sales strategy. Focus is placed on achieving the highest possible returns
to farmers over the entire sales volume, not necessarily by individual sale."

What on earth are the CWB trying to tell us in this table?

[Fransisco]

Show a little faith Tom, the board is all knowing and all seeing. That is how they are able to set accurate targets months before the seed actually goes in the ground let alone before it gets harvested.

The board always sells at higher prices than it's competitors we know this to be true because the board tells us it is.

[silverback]

I have no idea Tom.

What is their definition of "competitors" ?

Are they in the USA ? Ukraine? Argentina?

I am guessing they mean they were only able to achieve $7 per tonne more than target in the market we just witnessed?

There is also some fine print about their derivative trading activities that obviously went very well.

[TOM4CWB]

Silverback...

This is clever presentation of info:

Wheat Target – $6.90
Wheat [Result] – $13.81

It looks at first glance... the CWB got twice as much as they projected... and the $6.90 is instantly translated by a huge majority of us & of permit suffix holders... to per bushel value.

Don't I recall CWB saying US growers got weighted values of about this ammount?

Since Canada Grain Commission grade quality standards are worth at least this value... and the extra cleaning we do actually costs growers with CGC regulations... much more than this spread...

Plus the CWB takes back extra freight collected... and gives it back to the pools... after I may get charged for some expense my particular produce never incurred...

I know... I should shut up and keep paying.

[GrainBeetle]

blah blah blah, and if the CWB pools generated $20 billion in sales and had $5 million in hedging losses that generated these pool / pricing option revenues you would still ask for their heads.

Go back and read your study notes from your Agriculture 101 hedging course. Or did you sleep thru this class also?

[silverback]

That was very mature, well thought out and researched, but I don't remember seeing any of that in the annual report.

Care to relate your impressions of the numbers released in the report instead?