trying to understand CWB fixed price!!!

[lesm]

On Nov. 26, I could have received $6.61/bu for #2-13.5P based on Minn trading @ 7.65 CAN. Come Dec.3, my wheat was worth $6.98/bu based on Minn. at $8.42/bu.-lost $.40/ bu in the last 6 trading days. Any directors/CWB supporters care to take a stab as to what happened to my money. Could it be that the biggest crash took place after all the ballots were mailed? Mr. Harper, I beg of to please fix this broken system!!!

[TOM4CWB]

lesm

With the CWB... more is less.

even though there is very little 2CWRS harvested... the FPC lost BIG time BECAUSE initial price went up.

Obviously the #1CWRS 13.5 did not change because the spreads changed... but every other lower grade lost.

Further the CWB is lowering the basis premium.

It is simply crazy to use CWB pool initial spreads... as a determining market signal for the PPO contracts. Yet the CWB continues the insanity.

[ado089]

you sound like a greedy farmer. When you figure it out can you let the rest of us know.

[ajl]

Warning: trying to understand CWB fixed priced contracts is harmful to your health. But here goes: CWB has cronies that need your wheat and they can't afford to pay world market price so basis spreads have widend. To be fair you the same thing happens in canola as well since grain co widen their margins when futures surge. One solution was to sign a BPC in early Nov. and then price on a futures rally.

[charliep]

The main reason for the differences between the november 26 and december 6 is widening of spreads in initial payments. If I can read tables properly, 1CWRS 13.5 got a $1.86/bu adjustment payment. 2CWRS 13.5 got a $1.55/bu. Would have to look at the FPC to determine what the market change (read futures) and basis change was. No time now but you can do.

[URL="http://www.cwb.ca/public/en/farmers/payments/pdf/2010-11_bushel.pdf"]initials[/URL]

[TOM4CWB]

Charlie,

I posted it on the weekend

Between Nov 30 and Dec 3 the CWB basis on CWRS dropped in value close to $4/t.

[charliep]

Voila. You have the 40 cent/bu change.

[charliep]

Links to the 2 fpc dates.

November 26: futures - $281.22. Basis - $35.30 over. Adjustment minus $1.73.

[URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2010-mhrs-20101126.html"]nov 26[/URL]

December 3: futures - $309.30. Basis - $31.81 over. Adjustment minus $12.63.

<a href="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2010-mhrs-20101203.html">dec 3</a>

[charliep]

Oops. Not addressed to me. Never ask a mechanic a technical question. They love to tear things apart/understand how it works.

[cottonpicken]

Dumb question-anyone know what percentage of
farmers are using the various pricing options?