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CWB News Release: CWB Launches New Programs For A New Era.

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    CWB News Release: CWB Launches New Programs For A New Era.

    CWB Launches New Programs For A New Era.

    CWB News Release

    Winnipeg - The CWB today officially launched its new programs for a new grain-marketing era. Pool and cash contracts for wheat, durum and malting barley are now available, backed by CWB expertise and government guarantees. Starting today, farmers can sign up with the CWB to market their 2012 crop.

    "Farmers can rely on the CWB to provide them with the most effective grain-marketing strategy as they enter a new open-market environment," said CWB president and CEO Ian White, adding the new programs apply to the 2012-13 crop year which begins August 1. "Our programs offer competitive returns and solid risk management, with options designed for maximum choice and minimum hassle."

    White said the CWB has been consulting farmers over the past few months, including through a series of 21 meetings in communities across Western Canada, that wrap up tomorrow. "We've heard what farmers want from the CWB and we've shared our plans with them. The result is a set of programs with unique features, including the most delivery options, the most wheat reference grades, and the most focus on farmers' bottom line."

    CWB programs include two pools, three cash-contract programs and malting barley production contracts (descriptions attached). Farmers can sign up directly with the CWB for some contracts - and choose their delivery point later - or contract through their preferred CWB grain-handling partners, which currently include Cargill elevators across Western Canada and South West Terminal near Gull Lake, Saskatchewan. Handling agreements are expected to be reached shortly with all Prairie grain companies, giving farmers a wider range of delivery choices than any other contract available.

    White said farmer pricing pools - now available exclusively from the CWB - will be a popular marketing approach for many producers.

    "Our pool contracts provide simple, effective risk management and marketing that ensure farmers will never be forced to settle for the bottom of the market or chase an elusive market high," he said. "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."

    Through pooling, farmers keep the profits derived from the sale of their grain - right from the farm gate to the end user. If market rallies occur after contracts are signed, only pooling ensures that farmers continue to share in the additional revenue.

    Farmers can also be assured that their grain will be sold into the world's best markets. Long-standing CWB customers around the globe continue to value a sales relationships built up over 75 years, based on an impeccable reputation for quality and service, and a prized international brand.

    "These things are valuable assets for the farmers who choose to do business with us going forward," White said. "It all adds up to serve farmers very well in the new era that we are facing together."

    [URL="http://www.cwb.ca/newera"]Program descriptions are attached, with more information available at www.cwb.ca/newera .[/URL]

    #2
    CWB News Release

    The new CWB programs

    Price pools

    Pooling is a time-tested strategy for risk management, ensuring farmers are never forced to take prices from the bottom of the market, or left chasing an elusive market high. Instead, it returns the average received from all markets across the entire pooling period, meaning farmers keep all of the profits from their grain sales and share in any price rallies that occur after they sign a contract. Sign-up begins March 29.



    Harvest Pool: runs from August 1 to July 31. Sign-up ends October 31. Twelve reference grades for Canada Western Red Spring wheat, five reference grades for durum, plus Canada Prairie Spring Red wheat, Canada Western Red Winter wheat and two-row malting barley. Delivery is guaranteed by July 31. Can be signed directly with the CWB, with grain-handler chosen later.



    Early Delivery Pool: runs from August 1 to January 31. Sign-up ends September 28. Delivery is guaranteed by January 31. Same grades as above. Can be signed directly with the CWB, with grain-handler chosen later.





    Cash contracts

    Cash contracts can be used in combination with price pooling to build a complete marketing strategy, tailored to suit farmers' individual risk and financial objectives. A wide range of reference grades are offered. Target pricing is also available. Sign-up begins March 29.



    Deferred-Delivery Contract: provides upfront price certainty. Farmers lock a flat price and reference grade, then negotiate a delivery date with their grain handler.



    Futures-First Contract: fixes a futures-based value derived from farmers' choice of grain futures exchange and maturity, with basis and reference grade locked in later. Farmers negotiate their delivery period, pay no brokerage fees and have no margin calls. Futures can be locked in directly with the CWB.



    Basis-First Contract: fixes a basis and reference grade, with a futures-based value locked in later. The basis is fixed through their grain handler. Farmers negotiate their delivery period, pay no brokerage fees and have no margin calls.



    Real-time pricing: Farmers can find real-time price indicators from the CWB's Web site or by calling the CWB, with values that change daily between 9:30 a.m. and 1:15 p.m. as markets fluctuate. A handy online tool has been developed to make it easy for farmers to follow CWB prices.





    Malting barley production contracts

    A production contract guarantees a market for a farmer's malting barley, even before seeding or harvest. It provides assured access to the CWB malting barley pools, plus the option to switch to a cash contract. These contracts are available for two-row malting barley.

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