Wheat Pricing, DEMAND WHEATPLUS Option!

[TOM4CWB]

Charlie,

If the CWB can price malt barley on 90% of cash daily pricing/offer this way...

Why not my wheat?

I will gladly sign up to 90% of Port offering price... with a final basis payment that is pooled!

[charliep]

Good suggestion. It may be here sooner than you think if the CWB offers year round pricing. Suggest you talk to someone who attended the CWB combine to customer meeting.

Where the program really needs to start is with durum. No market to hedge in. Fixed price contracts that have extreme discounts to the PRO.

Matching CWB sales to farmer contracts prior to harvest would get rid of all this. Ah, this isn't pooling.

[stubblejumper]

Tom why is this program terrible for barley but good for wheat?

[charliep]

Interesting concept in that the CashPlus has moved away from pooling/implications for risk management. Farmer prices can be matched against CWB sales activities in specific time periods. Pretty interesting.

What is bad for malt barley?

Complex- Looked at a flowchart of decision making and the CashPlus has quadrupled the interactions between different players. Example, you will get a base from the CWB and then quality premiums directly with the maltster. If the selectors can't obtain enough malt barley volume from farmers during the 2 to 4 week window a sales contract with the CWB is open, they have to go back to the CWB with hat in hand/renegotiate. It goes on and on. And the administration cost to the supply chain is ___??

Potentially expensive. I have heard the number of a 10 % discount to the transacted CWB/selector price (minimum $25/tonne). How much of the money will be returned to farmers and how much will disappear? If the CWB charges administration fees, what services are you paying for? Do you accept paying the CWB for the supposed single desk benefit?

Interaction between the normal pricing pool and the CashPlus. What sales go where?

Clarity for both farmers and selectors on contract terms/performance and who enforces when there is a dispute. Will the CWB take on this role? Will note the latter likely took up 75 % of the discussion at the focus groups in Alberta based on feedback I got from participants.

Appears to be another rabbit the CWB is trying to pull out of the hat after they got a stay of execution on Aug. 1 and it became obvious the federal government was serious about change. My sources say they have been negotiating frantically with selectors since the Christmas time fiasco. Also talking to the federal. And the discussions with farmers are _______???

[parsley]

Export Manufactured Feed grain entirely moved away from pooling implications, years and years ago. Not one bloody bushel of the millions of bushels being exported, goes through CWB marketing or pooling.

Yawn. Farmers didn't even notice.

Do you think farmers would notice if the CWB, in addition to wheat and barley, added land to what they market?

Good questions, charliep.

Farmers must be comfortably high, yes that high, not to ask them.

Parsley