Perhaps equally important is the fact that most of costs are not market related but rather reflect the charge/premium the CWB charges to manage their risk (not the farmer who participates in the pooling system) relative to the pooling accounts. Part of this is administration, risk and time value value. Part is the cost of using futures, options and/or derivative markets. Part could be a potential profit center to either pad the contingency fund for down the road and/or deposit money in the overall pooling account (similar to 2004/05).
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Disker,
I too am on a futures only pricing from January... the CWB is really going to clean up on the basis on us unless something happens real soon.
This connection between the pool and fixed prices... ESPECIALLY for those who forward price over 6 months into the future... creates a huge risk exposure. 2X an ordinary deffered delivery contract. I note the Ontario Board has a reasonable fixed basis for off the combine 2008.
The CWB is not providing reasonable services... they are simply dreaming up new and innovative ways of milking folks who can't stand or afford using the CWB pools...
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Parsley,
Two gaurds... (I mean CWB district managers) are standing on the Berlin Wall... (I meant were looking east to Ontario) and the one asked the other:
Are you thinking what I am thinking?
The other nods... in agreement.
The first guys says: You had better keep your mouth shut or you will get us both thrown in Jail (I mean get fired and need to get a real job)!
I know Benny... it is just like stealing candy out of a toddlers' Easter basket for you and the NFU crew!
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