spring wheat

[charliep]

Last post before I hit the road for BC.

If you check out the CWB website, the fixed price contract and the flexpro are
the same. No difference in the way they are calculated except the fpc has the
adjustment factor applied starting August 1. You can compare the current year
as well as previous years on the CWB website. All the information is posted.

The other factor is the CWB does not offer a price on any of their producer
payment options. They offer the ability to lock in a pre-paid (maybe the word
up front) total payments. The CWB manages the risk of these programs across
a 15 to 18 month price pooling period with all costs being paid by the use of
PPO products (including topping up the contingency fund). At the same time,
the CWB is managing the risk of the overall pooling system by their sales pace
model/performance measure model.

My thoughts are the CWB risk management process costs users of PPO products
50 to 75 cents/bu in risk costs that are passed on to farmer users. Lost money
that goes into the derivatives market.

[charliep]

One last. Have lost cottonpicken's comments on the market. From
a strategy standpoint, the CWB producer payment option products
do have a futures market attached to them. If you believe
cottonpicken (not forecasting myself but worth discussing), you
have the alternatives of futures/options replacement strategy.
Another tool in the tool box to be used at appropriate times.

Call me crazy but I still like the alternative of being paid on delivery
and using the money to do things/pay bills. If I have a belief about
the market, I can use other tools to speculate on higher prices.

[cottonpicken]

I'm just babbling Charlie.

Should have been more clear,following some charts
gives perspective on this happening

http://charts.insidestocks.com/chart.asp?
sym=MWU0&data=A&jav=adv&vol=Y&divd=Y&evnt
=adv&grid=Y&code=BSTK&org=stk&fix=

because this is happening

http://charts.insidestocks.com/chart.asp?
sym=DXU0&data=A&jav=adv&vol=Y&divd=Y&evnt
=adv&grid=Y&code=BSTK&org=stk&fix=

and if you can figure the hows and whys on this one
out you win all the marbles

http://charts.insidestocks.com/chart.asp?
sym=ZNU0&data=A&jav=adv&vol=Y&divd=Y&evnt
=adv&grid=Y&code=BSTK&org=stk&fix=

in my opinion not investment advice due your own
due diligence

imo nia dyodd