Last Day to Sign Up Producer Payment Options/"B" Series

[charliep]

Sign-up deadlines
March 15, 2012
Producers have until 9 p.m. CT (Winnipeg time) March 15 to sign a BPC, FPC or FlexPro contract

Sign-up for Series B wheat delivery contracts ends at midnight (CT) on March 15.

Any final thoughts, questions, comments, etc. What are you likely to do?

An end of an era in some sense. The new world will have no deadlines with pricing and contracting 52 weeks a year.

[Hopperbin]

Good bye old era

[charliep]

Going to put the link in for the fixed price and basis contracts for your consideration as well as historical charts.

My recommendation remains to have old crop priced. Choices are use a fixed price contract in old crop or lock in a new crop open market deferred delivery contract. If you want to play the market to the end of the crop year, look at a CWB basis contract. I note you are locking in a good basis and a positive adjustment factor (better than almost all this past year).

[URL="http://www.cwb.ca/public/en/farmers/producer/historical/pdf/2011-12/2011-12fpcbpccharts.pdf"]basis charts 13 to 36[/URL]

<a href="http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/2011_index.html">Current FPC and basis</a>

[charliep]

One other comment.

A lot of farmers are hesitant to lock in new crop wheat prices unless they have locked in protein spreads. You know your grade and protein of crop you have in the bin. Look at current initial payment spreads and compare that to likely spreads in August. That will be another factor in the decision to sell old crop under the current rules or new crop in an open market.