CWB changes terms of PPO contracts

[charliep]

I ducked your question last time and I'm going to do it again likely
because I don't know but maybe a little because your marketing agency of
which you are a stakeholder should provide this information. You have
noted the open market price but I might ask what western Canada flour
mills are paying and the percentage export versus domestic usage. The
pooling system has nothing to do with price and everything to do with fair
(at least in the CWB operations side) distribution of revenue.

[Kodiak]

So Charlie, has anything changed under the scenario where one locks in a basis only?

Previously, we had to lock in the basis (had to be done by Oct 31 when the sign-up period for BPC's was over) when we signed the BPC. My read of this new wrinkle is now we have to commit the tonnage by Oct 31, but can leave the basis open - and can lock it in with the same times frames applicable as locking the futures portion. Have I read it wrongly?

[charliep]

I didn't read it that way but I could be wrong. If you
could leave basis and futures open, it would
effectively be the Flexpro with 4 extra months to make
a decision (actually even knowing grade), a commited
pricing period and the adjustment factor on the day
you sign. It wouldn't make sense to do it this way but
can't say wouldn't happen - stranger things have been
known to happen with CWB programs.