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FNA proposed acquisition of the Canadian Wheat Board
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Maizeing
Posted 9/17/2014 08:00 (#4078796 - in reply to #4078639)
Subject: RE: FNA proposed acquisition of the Canadian Wheat Board


Ontario's middle east
The basic concept with CWB was that all the wheat had to be sold through the board. The board pooled the wheat and sold it. The proceeds were averaged out across all producers. Everyone gets the same price(grade deductions, protein premiums aside). It worked reasonably well for many years but as some farmers became more astute at watching spot markets on your side of the boarder, they became less satisfied with selling through the board and waiting months for the rest of their money, all while assuming risk. Their argument was that they were not undermining board efforts if they were selling above the CWB prices. There were some strong and vocal dissenters who, being free market capitalists backed the conservative govt and help bring them to power and they held their feet to the fire on removing the single desk option. It's still a pretty controversial thing in Western Canada as many have no faith in the private grain companies to treat them fairly. Myself, being a guy that tries to see the opportunity in every difficulty, rather than vice versa, sees the potential for some growers out there to run there own basis trading elevators...... But time will tell, on that.
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