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Inconsistent market advice?

Letter to the editor from Kyle Korneychuk

            I read with great humour the comments made by FarmCo President John DePape in the February 4th edition of the Western Producer.

            In response to whether port country data was important DePape made the inconsistent statement that “Personally, I don’t favour reporting actual sales data at the port because that’s competitive (information) and should be confidential,” Has DePape seen the light?

            He certainly did not say this when he questioned every sale the farmer director elected CWB made. He usually compared CWB payments to some miraculously obtained figure he claimed to have found. Then he would go on to say it proved what a poor job the CWB had done!

            DePape goes on to say he is concerned about timing of reporting prices of grain to compare since grain companies may not be selling it the same day they are pricing it. But it never stopped him from criticizing the CWB when he would compare spot prices to port prices!

            The most outrageous comment DePape makes is that, “…it is dangerous to compare a weekly number to a cash price from a single day because prices fluctuate.” This is exactly what DePape did when he criticized the CWB pool price by comparing it to a cash price. What a difference three years make!

            DePape always criticized the CWB for not being more transparent in their sales data now he questions, “the motivation behind increased transparency, mainly that farmers want to know if they are being gouged.” It would appear DePape has lost all common sense. To expect that the industry have no checks and balances to ensure they are not gouging farmers is ridiculous! Especially in view of the fact that the farmer directors elected CWB did have an insight into actual sale data, actual basis values, actual transportation costs and grain company handling costs but people like DePape argued for the removal of this with their vehement opposition to the CWB!

            Farmers do need more transparency in grain pricing. Not many realize that the futures markets are not the price grain is sold for, only the value that it can be hedged at.

            Farmers did have price transparency with the single desk. But that was taken away by the likes of DePape who now whine that transparency in grain pricing is not required, and are really saying it is okay if farmers get gouged! Market freedom is here!

            Kyle Korneychuk