CWB Basis Contracts

[TOM4CWB]

Thalpenny and the CWB;

I note the Special Select 2 Row Barley initial price is $192.00/t and the PRO only $214/t, for a spread of only $22/t!

You changed the initial twice to reflect the changing barley market, why not even once on wheat?

[TOM4CWB]

thalpenny,

Being that December 21st is a long cold night...

I note the CWB Producer Direct US Morning selling prices for Dec 21st 2001 were as following:

(all prices based at port(Vancouver))

#1CWRS 14.5 was $202.85
#1CWRS 13.5 was $199.36
#1CWES was $192.10
#1CPS RED was $183.92
#1CPS WHT was $185.08

The spread on CWB basis contracts are determined by adding the basis to the initial payment of the other classes of wheat. This is based on the #1CWRS 13.5 Protein grade

CWB discount as now subtracted #1CWRS 13.5 $169.20
#1CWES -$126.00
--------------
$43.00/t

If the CWB were to apply a basis payment using the PRO, instead of the initials prices, the following extra $18.00/t would accrue to PPO payments:

#1CWRS 13.5 PRO is $210.00
#1CWES PRO is $185.00
------------
Discount using PRO $25.00/t

Again an additional $18.00/t to the CWES basis contract.

If however the CWB were to use their own North American sales values the added value is $35.74/t for CWES;

CWB Producer Direct sales as priced #1CWRS 13.5 $199.36
#1CWES -$192.10
--------------
$7.26/t instead of $43.00/t

CWB discount on CPS #1CWRS 13.5 $169.20
#1CPS Red -$120.50
--------------
$48.70/t

#1CWRS 13.5 PRO is $210.00
#1CPS Red PRO is $183.00
------------
Discount using PRO $27.00/t , in other words $21.70/t is missing from the basis contract payment.


If however the CWB were to use their own North American sales values the added value is $33.26/t;

CWB Producer Direct sales as priced #1CWRS 13.5 $199.36
#1CWES -$183.92
--------------
$15.44/t instead of $48.70/t

Can anyone expect "designated area" wheat producers to call these PPO options "marketing choice"?