Charlie,
The call for a transparent cash market... is miles ahead in application in Australia, and the wheat market is being deregulated.
What is the long and the short of their experience... from a risk management experience?
Here are some interesting statements from my market info provider from down under...Malcolm Bartholomaeus who provides Callum Downs to me. Malcolm farms... as well as providing this news letter... he is diversified and one of the best "Risk Management" strategists I have ever known.
The Australian Experience is VERY useful as they are 10 years ahead of us in marketing structure modification... AWB, ABB, have been required to respond to the global shift to the "Bio-Economy".
I must thank Mallefarmer for introducing us... Malle... you have added much to our vision of the future!
Jan 8/08 edition:
"This year is a whole new world. We are going to have a
deregulated wheat market, and for SA growers, our first
year of a deregulated barley market where we actually
have some grain to export! Things will change, and
what we have done in the past may not be appropriate.
One major change might be that we can shift emphasis
from forward sales to post harvest sales, as a way of
getting some control over the prices we achieve. For
some it may mean eventually moving away from
forward sales completely. For others it will just be a
shift in emphasis."
Charlie, Malle... we MUST adapt to these changes.
The long and short of his experience... from 94-95 to 07-08 is that because of last year... forward hedging is costing more than it returns.
Even before 07-08... it was hardly worth the effort... and risk management to cover off hedges can easily trip up any marketing plan if not properly executed.
Australia is getting transparent competitive marketing signals.
The "designated area" of Canada... deserves nothing less.
WHERE IS OUR TRASPARENT COMPETITIVE DAILY PRICE FOR WHEAT AND BARLEY!
I am sick and tired of the excuses the CWB is giving for refusing to provide this
MOST BASIC
SIMPLE
OPTION. A Daily PRICE, generated each day, with the ability to cash price each day after harvest.... and sell our inventories 6 months after harvest... without some perverted hammer ready to pound us down... if we decide to cash sell our wheat or barley.
What a novel idea... a cash daily price each business day!
How simple.
The call for a transparent cash market... is miles ahead in application in Australia, and the wheat market is being deregulated.
What is the long and the short of their experience... from a risk management experience?
Here are some interesting statements from my market info provider from down under...Malcolm Bartholomaeus who provides Callum Downs to me. Malcolm farms... as well as providing this news letter... he is diversified and one of the best "Risk Management" strategists I have ever known.
The Australian Experience is VERY useful as they are 10 years ahead of us in marketing structure modification... AWB, ABB, have been required to respond to the global shift to the "Bio-Economy".
I must thank Mallefarmer for introducing us... Malle... you have added much to our vision of the future!
Jan 8/08 edition:
"This year is a whole new world. We are going to have a
deregulated wheat market, and for SA growers, our first
year of a deregulated barley market where we actually
have some grain to export! Things will change, and
what we have done in the past may not be appropriate.
One major change might be that we can shift emphasis
from forward sales to post harvest sales, as a way of
getting some control over the prices we achieve. For
some it may mean eventually moving away from
forward sales completely. For others it will just be a
shift in emphasis."
Charlie, Malle... we MUST adapt to these changes.
The long and short of his experience... from 94-95 to 07-08 is that because of last year... forward hedging is costing more than it returns.
Even before 07-08... it was hardly worth the effort... and risk management to cover off hedges can easily trip up any marketing plan if not properly executed.
Australia is getting transparent competitive marketing signals.
The "designated area" of Canada... deserves nothing less.
WHERE IS OUR TRASPARENT COMPETITIVE DAILY PRICE FOR WHEAT AND BARLEY!
I am sick and tired of the excuses the CWB is giving for refusing to provide this
MOST BASIC
SIMPLE
OPTION. A Daily PRICE, generated each day, with the ability to cash price each day after harvest.... and sell our inventories 6 months after harvest... without some perverted hammer ready to pound us down... if we decide to cash sell our wheat or barley.
What a novel idea... a cash daily price each business day!
How simple.