I note that world trade varies between 102 MT and 109 MT. Stocks held be the major exporters back in 2003 was 40 MT. Today we are at 52 MT. I think that the major exporter stocks to trade ratio might be more important than total stocks to use, at least until China has a wreck.
Mr ASTOUNDED, you say that the CWB is holding stocks off the world market. Have you noticed that the CWB is on track to make record sales of durum wheat this year? Probably the largest percentage of the world trade in durum ever. Have also noticed what has happened to the traditional premium that durum wheat has enjoyed over spring wheat?
How much wheat should Canada plant this year? How much durum?
20 ethanol plants in Canada the size of the Husky plant in Lloydminster would use over 6 million tonnes per year and by my calculation would only get us 1/2 way to the 2010 federal target of 10% biofuels. How would that impact on the stocks to use ratios by 2012 especially if you could forecast what other exporters such as Australia and Argentina are projecting for ethanol production?
If Canada were to pull 5 million tonnes of wheat per year out of the export market and Australia and Argentina between them did another 5, the five major exporters would be cleaned out in five years.
Obviously there would be upward pressure on prices and therefore an incentive to increase production. One means to increse wheat production is by acreage shifts. Corn could be in short supply because of the demand for ethanol in the US which is expected to rise significantly due to their own energy programs. So wheat should not steal acres from corn. Soybeans and canola will have demands on those acres because of the corresponding increase in biodiesel production. It might not be easy to steal acres from canola or soybeans.
What about Brazil? They are the worlds leading producer of ethanol and they will be maximizing their sugar cane acres.
Perhaps it will be difficult for the world to meet the demands and world stocks will fall to near zero.
Would be nice if we didn't have to resort to feeding our wheat to the whales.
Mr ASTOUNDED, you say that the CWB is holding stocks off the world market. Have you noticed that the CWB is on track to make record sales of durum wheat this year? Probably the largest percentage of the world trade in durum ever. Have also noticed what has happened to the traditional premium that durum wheat has enjoyed over spring wheat?
How much wheat should Canada plant this year? How much durum?
20 ethanol plants in Canada the size of the Husky plant in Lloydminster would use over 6 million tonnes per year and by my calculation would only get us 1/2 way to the 2010 federal target of 10% biofuels. How would that impact on the stocks to use ratios by 2012 especially if you could forecast what other exporters such as Australia and Argentina are projecting for ethanol production?
If Canada were to pull 5 million tonnes of wheat per year out of the export market and Australia and Argentina between them did another 5, the five major exporters would be cleaned out in five years.
Obviously there would be upward pressure on prices and therefore an incentive to increase production. One means to increse wheat production is by acreage shifts. Corn could be in short supply because of the demand for ethanol in the US which is expected to rise significantly due to their own energy programs. So wheat should not steal acres from corn. Soybeans and canola will have demands on those acres because of the corresponding increase in biodiesel production. It might not be easy to steal acres from canola or soybeans.
What about Brazil? They are the worlds leading producer of ethanol and they will be maximizing their sugar cane acres.
Perhaps it will be difficult for the world to meet the demands and world stocks will fall to near zero.
Would be nice if we didn't have to resort to feeding our wheat to the whales.
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