CWB PRO: Grain Prices Up.

[TOM4CWB]

Hedgehog... take 15 minutes and watch this YouTube from Camrose. The Single Desk prices start a few minutes in after producer cars and trucking premiums.

The Condensed version:

High Quality CWRS...

US sales 1mmt @ $248/t

Japan sales 835,000t @ $326/t

UK sales 429,000t @ $321/t.

Why on EARTH did the CWB Discount sell into the US market... at $75/t UNDER world market prices?

Check out the 15min video:

Camrose 2011 Mtg August

[hobbyfrmr]

Agree with highwayman and like furrow,yuuuup.
I will pay the cost so the CWB can just get gone.
Organically they were costing me $12,000 to
$23,000 per year in buy backs. A phone call, and
a fax form with my visa number on it, quite
unbelievable really.

[TOM4CWB]

The CWB's idea of 'perfect' marketing... about as real as this wheat farm video!

Have a look! The Automatic wheat farm!

[blackpowder]

jdepape:
Rather reluctant to share actual basis for a few weeks. They are very new. It seems all companys post basis, but some have an internal daily trade? I placed an order just under what was being used internally and it was grabbed 3 days later.
Tried to do the other half at competition. Basis contract there would as of yet would be a 'one of'. Target price contract for basis was flatly cancelled by their head office later that day, told to 'dream on' at my price.
Can be more specific later.
Essentially C$/Mt subtracted from Minn. 1s and 2s 13.5px or better. Of course no quality spreads known.
Will of course confirm all this with respective buyers Tues am. as some of this is coming from texts etc.
Sounds like I was the first at either elevator to do these. Also the first on Friday to forward price a load of Malt bly. Can be fun being first.
Also, if wanted any info on CWB contracts told to "phone em yourself!" Their priority after themselves would be cwb pooled grain not priced contracts. Frosty 'tudes already!

[jdepape]

Blackpowder:

There are a number of ways to do basis against a
futures contract that trades in US dollars.

I gather for yours - in tonnes against MGEX - you
take MGEX futures (in bushels) and convert it to
tonnes, then subtract the basis (in tonnes).

You said it was in Cdn dollars/tonne which means
either you convert the futures to Cdn dollars
before subtracting the basis, or you simply
subtract the basis from the future and the result is
in Cdn dollars (which is what they do in Ontario
with corn and soybeans).

If its like in Ontario, you have foreign exchange
risk in your basis. If nothing at all changes in the
global wheat market but the Canada/US
exchange rate changes, the current market basis
will change. Canadian dollar weakness will mean
basis strength (better basis for a seller); CD
strength means weak basis. So, your basis may
seem good now but if the CD weakens (which
some are projecting) it won't look as good.

If you locked in this basis so that all you have to is
watch futures, you may want to keep an eye on
FX as well. Or you can step into the FX mkt and
hedge that portion to get a more conventional
basis contract that reflects local supply/demand
issues.

Not trying to preach - but I am quite interested in
how we transition into the new market. If we use
US futures, it will be more complex than we are
used to. If we can help ICE futures succeed, it
will be much less so.

If you want to chat about this, drop me an email at
john@depape.ca