BennyHinn Perhaps the most interesting thing to me is the close relationship between the daily price/fixed price and the domestic human consumption price. If this relationship is consistent, then farmers do have the ability to move wheat south (with some cost which includes added administration/complexity). So this is not the issue in this thread.
The thread started with a comment on the process around calculating both the daily price contract and the fixed price contract. Both the CWB contracts are administered through single desk calculation and not competition. With the daily price, why shouldn't an Alberta farmer be able to compare this price to a Montana one - regardless of whether you use a telephone to call a US elevator, the internet, an advisor or even (heavan forbid) the CWB? Why isn't the CWB more open on the process for determining? When the CWB says they are taking $5/tonne off for additional basis risk on DPC contracts, where does the money go? Based on current prices, this number would seem to be even higher with the DPC (which sold out in 1 1/2 hours on June 18) and from there a cash cow simply to pad the contingency fund.
The thread started with a comment on the process around calculating both the daily price contract and the fixed price contract. Both the CWB contracts are administered through single desk calculation and not competition. With the daily price, why shouldn't an Alberta farmer be able to compare this price to a Montana one - regardless of whether you use a telephone to call a US elevator, the internet, an advisor or even (heavan forbid) the CWB? Why isn't the CWB more open on the process for determining? When the CWB says they are taking $5/tonne off for additional basis risk on DPC contracts, where does the money go? Based on current prices, this number would seem to be even higher with the DPC (which sold out in 1 1/2 hours on June 18) and from there a cash cow simply to pad the contingency fund.
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