CWB Pool Return Outlook

[charliep]

Just a note to highlight the CWB released its December Pool Return Outlook today (Dec. 20). The major change was a narrowing of spreads with higher protein CWRS coming down $2 to $3/t and mid quality up by $3/t. The spreads on initial payments are currently wider than the PRO values. The best choice remains to deliver high protein CWRS wheat against fixed price contracts and either deliver CPS wheat into the price pool or sell into the domestic feed market.

Malt barley payment forecasts were also reduced. Likely more malt barley disappearing into the feed system.

Merry Christmas to everyone. Talk at you all in the new year.

[TOM4CWB]

Charlie,

I note on CPS and CWES the initial payments are $120 and $126 respectively.

The PRO's are $183.92 and $185.00, almost $60.00/t over the initials.

On #1CWRS 14.5 the PRO is $216.00 and the initial price is $180.00/t, only $36.00/t left to the pooling account.

Further CPS and CWES production areas are higher input and cost/ac.

This larger spread is taken directly out of my payment if I have a fixed price contract, as the initial payments fix the basis spread between the different types of wheat!

Why hasn't there been an adjustment in initial payments, to accurately reflect the changing market conditions?

How can anyone depend on the PPO system if the CWB will not fairly reflect market conditions?