New CWB Pricing and Pooling Alternative Details Announced Today

[charliep]

Just a note to let everyone know the CWB will be announcing more details on their programs today. At webinar at 10 Manitoba time and 9 Alberta time.

[URL="http://www.cwb.ca/public/en/"]CWB[/URL]

[charliep]

The Broshures have already been posted.

[URL="http://www.cwb.ca/public/en/farmers/1213programs/harvest/"]CWB program details[/URL]

[bucket]

Any prices?

[charliep]

Deferred delivery prices and basis have started to be posted already.

[URL="http://www.cwb.ca/public/en/farmers/1213programs/priceindicator/"]price indicator[/URL]

As an example, the indicated price for 1CWRS 13.5 is $8.16/bu west coast or about $6.70/bu Alberta. This is likely below the current elevator company bids but you have to way more flexibility and perhaps certainty with regards to grade spreads. I will defer to those of you in the business and better access to grain company websites than I have. A learning experience for everyone.

Was a question on pool return outlook as guides for decisions on the two pooling alternatives and my interpretation is they are still looking at this but that the CWB will likely make this more of a farmer customer based service and not a publically available one.

[charliep]

If you go to the futures and basis section, trades are real time.

When I just looked, December futures were $6.80/bu. Basis 33 cents over. This will change minute to minute.

[Kodiak]

From the CWB announcement......"With one CWB contract, farmers are covered in terms of sales planning, execution, foreign exchange and risk management - including the risk from grade spreads, which can be a significant issue for spring wheat in particular."
Don't have the details as to how grade spreads are going to be risk managed through their programs. Has anyone got this figured out?? Grade spreads were only locked in with the old PPO's once you did a FPC/BPC and made deliveries. Otherwise grade spreads were still open. I can't see things being much different now. Buyers have grade and protein spread risk until they complete their trades, so I can't see them covering the farmer's risk.

[bucket]

There is something that has to change since the cwb is at 7.88 for 1cwrs 13.5 in Thunder bay and some of the locals are at 7.30 net.

I doubt the cwb can get grain to thunder bay for less than 40 cents. So there is no premium to their current prices.