CWB Futures only... Basis Lockup 07-08

[TOM4CWB]

Charlie et al,

Upon checking again I see we are headed for a forced basis price out Nov. 1 07 on CWB FPC contracts priced "Futures Only".

PRO day has often been bad for the basis month after month... Straight down.

For #1CWRS 07-08 Basis for FPC

Feb 26/07 $5.73/t
March 30 $5.42
April 30 $4.73
May 30 $4.15
June 29 $.02
July 31 -$6.86
August 31 -$5.71
Sept 26 -$7.51

Who wants to hazard a guess what will happen by Nov. 1/07 on the Basis?

Ideas on what will happen tomorrow?

[melvill]

Tom, I'm not even going to guess. If someone can tell me exactly what wheat futures will do between now and the end of October, I'd take a stab at it. However, I don't have a death wish, and too many people know where I live. So without written-in-stone futures activity, I'm not going there!

I may get shot for this but if I was holding a futures-first CWB basis contract, I'd be rooting for U.S. wheat futures to be heading down.

[TOM4CWB]

Melvill,

I need a dual personality... I know... perhaps we should sell more wheat so it can go down?

GRIN!

... these prices are very tempting!

Formula priced Pooling... what we gain on one... we will lose on the other!

[melvill]

Well, Tom4cwb, if you control enough wheat or margin money, to move the market down all by yourself, go to it. But warn me ahead of time. I want to watch.