Dates for Futures Only FPC Announced

[charliep]

Some discussion about this in an old thread (couldn't find) so thought I would post today's press release here.

Beginning Sept. 4, 2007, producers can sign up the futures portion of a 2008-09 Basis Price Contract (BPC) for wheat. The CWB will offer the December 2008 futures price from the relevant U.S. exchange for each of the seven classes of wheat. Starting Feb. 25, 2008, producers can price the basis when the first new-crop PRO is released.

[TOM4CWB]

Charlie,

http://www.ontariowheatboard.com/dailyprices.php

I note that the Ontario Wheat Producers Marketing Board is already offering 2008 July, August, Sept. cash forward prices of:

Soft White Winter $198.79 ($5.41)
Soft Red Winter $196.87 ($5.39)
Hard Red Winter $202.65 ($5.52)
Hard Red Spring $209.58 ($5.70)
Hard Red Spring Interim (D) $199.95($5.44)

This means Ontario Wheat growers can lock in higher prices right now for off the combine 2008... than we can get now IN THE "dESIGNATED aREA" with an inverse market of HRS @$1.20/BU to HRW @$1.50/bu

iF THE cwb CONTINUES TO claim PREMIUM PRICES... they should HAVE TO back THE CLAIM WITH real PERFORMANCE.

[ColevilleH2S]

Speaking of "Inverse" I got this off of a Blog on DTN today written by Pat Hill it says;
"The HRW index gained 33 cents to $6.26, and that basis firmed a penny to 57 under the Sep. For HRS, the index was up 21 cents to $6.07 and the basis was up 2 cents on the week, to 64 under the Sep."

Has this always been the case, where U.S. Winter Wheat is priced at a premium to Spring Wheat. I haven't paid too much attention to this spread in the past. I have always been told HRS is a premium product to HRW (I'm usually dumb enough to believe what people tell me).

[TOM4CWB]

Cole,

Always is a long time. Historically it is usually the case that HRS is worth more than HRW because it is often used as an upgrade quality booster for a mills grist of ordinary HRW wheat that is 10%px for enhancement when baking bread products.

When there is plenty of protein around (like 2006 HRW) then the premium can disappear when the crop average approaches the 13%px.