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Another look at CWB exports

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    Another look at CWB exports

    From this weeks agriweek

    With four weeks left in the 2008-09 crop year, Canadian grain and oilseed exports totalled 28.31 million tonnes as of June 28, up 10% from a year ago. The 2008 harvest of the seven major western grains was 26% larger at 61.87 million tonnes.

    Exports of Canadian Wheat Board grains came to 17.49 million tonnes by June 28, up 5% from 16.67 a year ago. Nondurum wheat shipments are 18% higher at 12.78 million tonnes and durum exports are up 11% but <b>barley shipments are down 52%.</b> Almost all barley exports this crop year have been malting barley.

    Canola exports have already set a crop-year record at 7.16 million tonnes and are up 39% from 5.15 million at this time a year ago. Oats exports are down, flax shipments are similar (despite a 36% increase in production last year) and peas are up.

    Total domestic use was slightly lower, especially milling of durum wheat, which is down by more than half to 312,000 tonnes compared to 707,000 a year ago. Domestic use of non-durum wheat recorded through commercial channels was up 5%.

    Canola crush by domestic mills was up 2% at 4.05 million tonnes, setting a new record for the date. Domestic processing of oats is down sharply.

    <b>The Wheat Board’s exports, besides not increasing in line with higher 2008 production, also have not been keeping up with off-farm deliveries, resulting in a big build-up of Wheat Board inventory in the commercial system. The Board took in almost 20 million tonnes of non-durum and durum wheat while exporting 16.10 million, boosting commercial stocks to
    4.02 million tonnes from 3.27 million a year ago. As it happens, the outlook for a shorter crop for 2009 makes a large carryover from the about-to-end crop year more manageable. But the Wheat Board could not have been deliberately going slow knowing there would be a small crop in 2009. The latest figures do nothing to dispel the notion that the Board is not able to sell what is being produced. But it kept farmer delivery calls as high as possible to make it look like grain was moving.</b>

    The most impressive achievement was
    by canola exporters, who did make good
    use of a record supply. The 2008-09 crop year was the last where such quantities of Canadian canola will be available for export. Sharply higher domestic crush capacity from the opening next year of two new plants will limit export availability
    to about 5 million tonnes in a good year.

    #2
    "The latest figures do nothing to dispel the notion that the Board is not able to sell what is being produced. But it kept farmer delivery calls as high as possible to make it look like grain was moving."

    Even though we get firesale prices from the Board, they can't move our crop. Real nice.

    Maybe the boys and girls at 423 mainstreet should actually try hustling sales instead of waiting for the phone to ring while they're hustling prairie farmers.

    But really, why should they? They have a monopoly, the wheat's not going anywhere (literally), there is no competition to take it away.

    Comment


      #3
      In related news...

      The Canadian Wheat Board had no official comment on last month’s groundbreaking Court of Appeal decision confirming the federal government’s authority over its management decisions. Instead it issued a news release announcing 17
      winners of its annual photography contest, which attracted 750 submissions for the 2009-10 calendar.

      Neither did agriminister Ritz have anything to say and there was no indication that the government is preparing to use the ruling in any new
      initiative towards a dual market in wheat and barley.

      Comment


        #4
        Question: Does the CWB have to sell all of the grain that is offered to it?

        I am thinking that it doesn't, but am not sure. Does anyone else know?

        Comment


          #5
          My take is that the CWB only can sell what they buy, and Part II of the CWB Act allows them to hold back deliveries, which in the case of wheat and barley, are sales to the CWB.

          Comment


            #6
            In other words we are not allowed to sell it to anyone else, but if for whatever reason the wheat board doesn't want to sell it, it doesn't have to.

            Comment


              #7
              That is right. Iremember atime in the late 60's when they pulled out of the market because OUR WHEAT was worth more(in their estimation) than the world was paying. Try living on a 4 bushel quote(per seeded acre) these days.

              Comment


                #8
                Also, in the 60s there was no domestic non-board feed market to help farmers. Only after Ray Sommerville beat the CWB soundly in the Supreme Court did the government bring in the non-board feed market by regulation in the 70s.

                Comment

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