Details 2011/12 Flexpro Announced Today

[TOM4CWB]

Charlie,

'Winnipeg - The sign-up window for the CWB's FlexPro pricing option will be extended by six months, the CWB announced today, providing more choice and flexibility for farmers who use this popular program."

How stupid do they think growers are?

The 'single desk' is over.

It is already started,,, COMPETITION.

The CWB is dreaming if they think I am going to sign up to a 'price discount' selling system.

CASH PRICE. FAIR. NOW.

I DO NOT SEE A FAIR COMPETITIVE CWB PRICE.

OBERG JUST DOES NOT GET IT!!!

WHERE IS THE CWB 'PREMIUM'???

THE PREMIUM... IS A DISCOUNT???

NO WONDER THE US MARKETERS ARE SO MAD AT THE CWB!!!

WHAT A JOKE WE ARE.

[charliep]

will leave most for discussion but a couple of comments.

First is the flexpro has got around the issue of signing a production
contract without knowing grade by extending the signup period until
after harvest. You can now sign a flexpro after harvest. The
downside is flexpro now includes an adjustment factor - this could
be negative in a rising market but can be positive in falling market.

On the world price frong, farmers need to understand the concept of
price differentiation better. Yes it does mean selling into premium
markets. It also can mean selling into deeply discounted markets in
competition with countries like Russia and Ukraine at deep freight
pain when the CWB wants to move volumes. No discipline of the
market (i.e. having to obtain farmer supplies based on a price signal).

I was going to put the daily price explanation in my other post but
will do now. The price is blend of world prices on a daily basis. THE
DAILY PPO PRICES ARE NOT US VALUES. Don't know the
spread/percentage but here is what MIGHT happen in the PPO
calculation. US prices make up 40 % of the daily posted prices (North
American milling market), Australian prices make up 30 % of the price
(competition into Asian markets), European wheat prices 20 % (middle
east/north africa). Ukraine/Russia - 10 %.

CWB uses the above combined with their sales program to determine
the daily price.

Don't shoot the messenger. Just the process. Only an example as
well. Only the CWB knows the formula and prices being used. No way
of verifying or allowing competition.

[checking]

Why can't you guys sleep?

Many of us sleep well, but wake up, read these specially designed marketing scheme option explanations, and get instant headaches.

Someone, please turn the clock forward on the CWB.

[charliep]

Good question. No answer.

If you are familiar with current CWB programs and use them, you are well placed to move into the new world of an open market.

Solid CWB pricing programs and innovation that offer value/risk management for farmers and grain companies will give them the chance of survival in this new world.

The alternatives are actually quite easy.

Do you like today's price? Sign a fixed price contract.

Do you like the basis but not the futures price? Basis price contract basis only.

Do you like the futures price but not the basis? Basis price contract futures only.

Do like none of the above (futures, basis, price) but are willing to commit production? Flexpro.

Do you recognize a good price that should be locked in/need the cash for bills but have a strong feeling prices/payments could go higher? Early payment option.

[charliep]

I should note the open market will have more of a connection between delivery and price. With today's CWB , there is no connection between delivery and price except perhaps guaranteed delivery contracts. You sign an "A", "B" or "C" series contract, wait for acceptance levels, wait for contract calls and finally space at an elevator within reasonable trucking distance. Normally wouldn't sign a production contract without a price commitment but doesn't matter in the case of the CWB.

On the plus side, you can apply fpc and flexpro contracts to existing deliveries you have in the pooling system. Example, deliver in the fall/take the initial payment, wait for a rally during the winter/sign an fpc or flexpro and apply use to price out this wheat.

Got the number and PPO products made up 48 % of this past year delivery percentage. Record start in terms of contract volume to the 2011/12 crop year.

[bucket]

charliep

Could the cwb not use that info as an indicator that farmers want a different system than the pools?

This is where they should be looking instead of having a plebiscite.

[charliep]

I am going to do the civil servant soft shoe and dance around that one. Differences in attitudes to risk, improved knowledge of market contracts and need to generate cash flow by many operations is changing the landscape of farmers. Good question for others.

[TOM4CWB]

Bucket/Charlie,

The CWB is suicidal.

THERE are other options... Aug 1 2012 is just around the corner.

IT starts NOW. The CWB can't stop it. This is about impossible to put back in the bottle... and everyone will make sure it is.

The CWB can't stop 'Non-board wheat barley and durum sales.

The 'single buying desk' is over. NOW.

How on earth is the CWB going to stop us?