Standing in for barley delivery.

[jack]

Could someone please go through all the steps that a producer must go through if he/she decides to stand in for delivery after shorting the WCE Western Barley Contract?

[bbrindle]

Here's some general information about the contract: http://www.agric.gov.ab.ca/economic/marketing_manual/grains/grains_m10.html and here's some information about delivery against a contract http://www.agric.gov.ab.ca/economic/marketing_manual/grains/grains_m11.html Hope this helps, or just ask if you have more questions about it.

[charliep]

To get some discussion going, why would you look at delivering against western barley futures? You didn't indicate your location, but my observation is that basis levels for barley are generally less than the transportation grid under this contract. Have you looked at agralink (http://www.agralink.ca/agraquotes/static_order.html) for current bid offers for both cash and basis levels?

[melvill]

There are two places on the Alberta Agriculture Web site that you will be able to get at least some idea of what cash prices are for barley in your area and other areas of Alberta so that you can calculate basis levels. They are: http://www.agric.gov.ab.ca/economic/stats/grdaily.html#Street and http://www.agric.gov.ab.ca/economic/stats/feedgr.html