Via Agriville;
So far in the 2006-07 marketing year which began last June 1; private U.S. grain companies have exported 587,000 tonnes of durum wheat. The Canadian Wheat Board’s durum exports include at least 250,000 tonnes to the U.S.
The American durum wheat harvest last fall was 1.44 million tonnes. Domestic use is 2.29 million tonnes. The U.S. agriculture department expects total 2006-07 imports, virtually all from Canada, at 1.12 million tonnes.”
Do the math. How can American grain companies export durum at the rate of 60,000 tonnes a month when the country’s total durum production is 680,000 tonnes short of its own domestic needs?
It looks like the American grain trade is buying more and re-exporting the rest at a profit, in other words at higher prices than it pays the Board.
Nobody could possibly expect that astute U.S. grain traders are buying Wheat Board durum at the premium prices the Board claims to be commanding due to its single-desk market power, then selling it offshore at a loss to undercut the premium prices the Board is supposed to be getting in those markets.
It is far more plausible that U.S. traders are buying Canadian durum cheaply and exporting it at higher prices. Exports in 2006-07 will equal 38% of domestic U.S. consumption.
The real fun begins on April 1, when the CWB will finally be subject to Freedom of Information requests.
More
In a recent article published in the Star Phoenix and trumpeted by pro-monopoly groups, Richard Gray, U of S agricultural economist and apologist for the CWB monopoly, claims the following:
* The CWB intentionally limits sales into the U.S. malt barley market in order to keep the U.S. price artificially high.
* The CWB does this even though it knows this will force many prairie farmers to sell their malt-quality barley for feed.
Agri-socialism is alive and well.
What’s yours is ours and don’t whine about sharing to make others rich.
Socialism . . still not quite dead enough.
Socailism = Kelptocracy
State marketing monopolies = Kleptocrat enterprise
Hmmm “Kelptocracy” eh?…
…rule by unitelligent aggressive aquatic plant life….I think I like that even better than “Kleptocracy” in describing socialist regimes 😉
All I can say is…wow!
I just read the whole post, its a real eye opener.
There is a challenge on it to the anti-choice crowd to explain all this. Why is the CWB selling board grains to the Yanks at bargain basement prices who then turn around and sell them for world prices, pocketing the difference?
So what is the explanation? All you status quo, monopolists, what’s up? What’s your answer? Where are the real world in your pocket premiums you guys keep blathering on about?
The evidence that Canadian farmers are getting hosed just keeps piling on.
The Algerian durum wheat scandal, “tens of dollars per tonne”
Agricore price comparisons
The Winnipeg Commodity exchange price comparisons
The long term price comparison charts comparing Alberta and Montana feed and malt barley prices.
We’re losing $34.00\tonne on feed barley for export and $55.00\tonne on malt barley on price alone.
Then factor in the added costs, the federal grain monitor reports(not estimates)that board grains cost $17-30\ tonne more to export than canola.
I don’t know any reasonable thinking person can vote in favour of this.
Hey when are we going to ship that load of TRADLOTRIKIKALY to SHERMANS PLANET? and how long will it take CYRANO JONES to get rid of alll those TRIBLES on Deep Space Station K-7?
Todays Leader-Post
CWB meeting….Citoyen Dion says the questions in the plebiscite are not clear (to who?) and the Government is “not fair”….
What are the Libs trying to cover up this time?
Todays Leader-Post
CWB meeting….Citoyen Dion says the questions in the plebiscite are not clear (to who?) and the Government is “not fair”….
What are the Libs trying to cover up this time?
‘Eye Opener’ Farmer Joe, this is the type of thing that has gone on for decades.
For your pleasure:
” When the CWB chief strategist, G N Vogel ….took a look at the situation and calculated that the Board could find customers for no more than 12 or 13 million tons of the 17 million tons that Canada needed to market abroad (in 1976). He studied the markets………
He (Vogel) called in representatives of several private companies and made them an offer they couldn’t refuse. He offered to sell them (CWB) wheat – 4 million tons of it – at a substantial discount from the price at which it was selling in the United States. American spring wheat comparable to Canada’s was selling in Minneapolis for $148 per ton; the CWB offered it at $135 per ton. This gave the companies a chance for a highly profitable arbitrage.
The first people to sense something was going on behind the scenes in Winnipeg were Minnesota wheat farmers, for the ‘spot’ grain market price collapsed abruptly in the Midwest as international companies ceased buying American wheat and made arrangements to sell Canadian wheat from across the border…..”
– Merchants of Grain
Have you ever wondered why the grain farmers in the US keep taking the CWB to court?
Maybe this story will give it some perspective.
And the question is, why does each farmer need an expensive bunch of bean counters to make this type of marketing decision for them?
Some farmers no doubt benefitted from the sale but many of them might have been happier to sell their own grain later when they wanted to at a higher price they were comfortable with.
Wheat is probably the world’s second oldest traded commodity and it’s a joke that some farmers have bought into the line that they are not smart enough to sell it. And need the CWB.
Get rid of the bean counters and lawyers, vote for choice.
When you consider that the CWB uses the evil multinationals (accredited exporters) to market up to 50% of wheat exports and up to 80% of malt barley exports. It means the multinationals are consistently able to find a better price in the market than the CWB.