Nov. PRO

[newguy]

They say durum trade has been minimal this crop year yet 50% has been accepted and the system seems to have started out empty. Are we still filling cheap sales from last crop year? If so it should be no problem fireing people with cause.

[charliep]

[URL="http://www.cwb.ca/dom/db/contracts/pool_return/pro.nsf/WebPRPub/2011_20111124.html?OpenDocument&CropYr=2011-12"]November 2011[/URL]

[charliep]

Have to get something off my chest. I see on the comments on the contigency fund/where it should go.

I note the relationship between the the PRO values and the fixed including today.

[URL="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2011-mhrs-20111124.html"]November 24[/URL]

How many dollars are in the PPO contingency fund today? At the end of the 2010/11 crop year?

How did dollars in the contingency fund build up so quickly? Has the CWB been building margin/additional risk into the PPO basis levels?

If farmers who used the PPO fund were the ones who put dollars into the contingency fund, why should they give these dollars to the overall pooling system to shared with their neighbors? Maybe the individuals who want pooling should be prepared to put up dollars to develop a contingency fund just like the individuals who used producer payment options.

[newguy]

Give me a 3 or 4 month pool . Not a 24 month.

[charliep]

Will let others comment on the drop in durum payment forecasts.

Perhaps confused by terminology but 100 % of all CWB crops was accepted on the "A" series including durum. There is 50 % call for delivery.

[katoe]

Ritz is taking the contingency fund.

[bucket]

Better him than the eight directors hell bent on ****ing everything up. They could have been offering new crop contracts if they half a brain between the eight of them.

[charliep]

katoe

Who does the contingency fund belong to? Why?

My argument is better carried forward into the new CWB to look after the risk of payment programs that will be offered.

It should not be redistributed to all farmers by being deposited to all farmers in the pooling system. Otherwise it is a direct transfer of wealth/money between farmers who used the programs and farmers who chose the pooling system.

convince me otherwise. Be prepared to show your math.

[BreadWinner]

It belongs to the CWB,It is a socialist tax that all
farmers knew the CWB was taking from all grain
sales through the CWB. There is no doubt the the
ppo's are being used for slush funds and pool
padding. I dong know who should get the money
the CWB had screwed all of us , maybe Ritz has it
right.

[charliep]

An interesting excercise is to follow CWB basis levels over time. You have to do the homework yourself but it interesting to compare Monday FPC calculations of this past week to Friday.

Basis went from a March basis (other months are similar) of $39.47 under (adjustment $6.52) to a basis of $26.30 under (adjustment $11.44).

Not surprisingly, the FPC value held at a very similar value ($296.26 Monday versus $296.32 Friday).

Won't matter in the future but the FPC is a very managed advance payment system with close to zero relationship with the market.

I will note the slide on use of CWB producer payment options from the 2010/11 year end presentation. My understanding is the sign up on the 2011/12 crop year has also been large.

[URL="http://www.cwb.ca/public/en/newsroom/releases/pdf/cropyearend2011.pdf"]slide 13[/URL]