John,
You are missing something.
While not all grainco's charge extra for risk on problems at the port all the time... it is very often a part of a package that is compensation sought through the basis on non-board grains.
In a competitive sellers market... arbitage more likely favours the grower being charged less and tighter handle margins.
If the buyers are in control because of plentiful supply... basis will widen and risk premiums paid out of the basis charged.
The single desk needs neither because it is illegal to avoid the CWB... all grain must be sold through the single desk. Therefore there are no competitive forces keeping CWB charges fair.
You are missing something.
While not all grainco's charge extra for risk on problems at the port all the time... it is very often a part of a package that is compensation sought through the basis on non-board grains.
In a competitive sellers market... arbitage more likely favours the grower being charged less and tighter handle margins.
If the buyers are in control because of plentiful supply... basis will widen and risk premiums paid out of the basis charged.
The single desk needs neither because it is illegal to avoid the CWB... all grain must be sold through the single desk. Therefore there are no competitive forces keeping CWB charges fair.
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