EPO for Durum

[Jagfarms]

Anybody thinking about using the Durum EPO. I am thinking it could be a good Idea when the new pro's come out at the end of the month.

[charliep]

I thought I would toss up the cost side.

PRO - 1CWAD 13 PRO - $321/tonne (port)

100 % EPO premium $29/tonne. Interesting both a 100 % EPO and a FPC put the same amount of money from a cash flow perspective but the 100 % EPO still allows to enjoy higher durum if they occur.

90 % EPO premium $13.25/tonne

80 % EPO premium $5.25/tonne.

Initial payment $147.20/tonne (port). When will the initial payment be increased - my guess November so the Sept. PRO can be used as a base.

A final note (highlighted by the CWB) is to keep your EPO contracted volumes to the amount you plan on delivering over the next month. They have noted farmers who contracted to much early at high premiums. These premiums should come during the crop reflecting higher amounts priced in the pool and lower risk (particularly as initial payments are adjusted higher).

[charliep]

Re-read and realize I left out some important words in the last sentence of the above thread.

These premiums should come DOWN during the crop YEAR reflecting higher amounts priced in the poolS and lower risk (particularly as initial payments are adjusted higher).

Would also agree initial posting to leave decision till after Thursday (next PRO).