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CWB Feed Wheat Discounts

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    CWB Feed Wheat Discounts

    Thalpenny,

    On the PPO basis contracts, how do the discounts for feed wheat work?

    Let us say I did a July basis contract, and was to price my 62lb feed CWRS wheat right now.

    CWB feed wheat price...$107/t basis Port
    $47/t freight and handling

    Leaving an initial payment of $60/t

    Now, the difference today between the initial price on a #1CWRS 13.5Px @ $187.20 and the October 9 quoted price of $289/t leaves $102.80/t.

    Now your web site says you are going to subtract $58.42/t???

    This means a cheque of $44.38 will be sent to me for a grand total return of... an amazing $104.38/t total return???

    $104.38/t is $2.84/bu???? total return, with the highest prices in history, when I have one of the lower handling charges in western Canada???

    Since this wheat is really worth double what you are willing to give me, where does the other $2.50/bu go???

    Is this really how your PPO system works this year Thalpenny????

    How can you even fathom that this CWB system is extracting anything but a huge loss, from the PPO contract holder that through no fault of his or her own, had a bad time with the weather?

    Do you call this fair Thalpenny???

    #2
    Thalpenny,

    Say I priced some wheat at the end of July, flat priced say at $230/t #1CWRS 13.5Px.

    Does the discount today $58.42/t for feed wheat apply to my delivery if I got you to buy the feed wheat today?

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