CWB Annouces Enhancements to Wheat Contracts

[charliep]

Some good news on a Friday afternoon. The CWB is now offering EFP and target pricing - a step forward. EFP have been offered in the past but were dropped due to lack of use. The reduction in hours is less favorable but demonstrates the reality of these highly volatile markets.

March 2009 is also available for pricing.

Quote: "At a glance
The Canadian Wheat Board has announced a change to the effective pricing period for its Producer Payment Option programs. As of Monday, Feb. 25, the pricing period will run from 3 p.m. to 9 p.m. Central Time, each business day. The CWB has made this adjustment in order to better manage trade risk on these programs. An exchange-for-physicals can be undertaken to accommodate trading outside the pricing period. The CWB also reminds farmers that a no-charge Target Pricing Service is available for those who wish to lock in a specific target price for their Fixed Price or Basis Price contracts.
The CWB has also announced that it will not be offering the March 2009 futures month under its Basis Price Contract program for basis or futures lock-ins until such time that there is sufficient liquidity in the market."

[charliep]

Misread. March 2009 is not being offered at the moment.

[furrowtickler]

Charlie, is that each business day all year long, not just a short time period as in the past?

[charliep]

Good question. I assume you mean the target pricing. I assume target pricing (futures) is on the close but will need to ask the question. How is target pricing handled with non board? Can you place target futures price/have filled during trading hours?

On the exchange of futures for physicals, I assume you are the one putting the trade on so in control. Need more clarity here as well/have asked the question.

[TOM4CWB]

Charlie,

The reduction in hours I can lock-in is certainly a major step backwards.

1.) If the CWB were truly concerned about risk management, they would live trade the contracts between 8:30am and 12:30pm.

2.) THe reduction in lock-in hours from 9:00pm to 7:30am, especially when live trading is NOT available during normal business hours... is NOT compatible with what the normal grain trade allows. This is a major step backwards and a reduction in service.

3.) The CWB has all the tools to offer a fair trading system... but is going to force me to spend big bucks to do the futures on my own. Another nail in the coffin. If I already and skilled and have the resources to live trade myself...

Why do I NEED the CWB?

I don't.

and

I won't.

I hope when volatility is less... the CWB will return to normal lock-in hours.

Most of all, above all, the value in the futures locked in, must be returned to the grower... IF the position is liquidated. THis is square one... the beginning of the road to fair trade at the CWB.

I am waiting.

Everything else is secondary and rather insignificant compared to this issue... FAIR TRADE and integrity at the CWB.

WORDS are cheap. Actions that back up the words... that fulfill with actions... is what we all have been waiting for... for generations!

[TOM4CWB]

CWB Core Values typed in manually, because they won't even allow them to be copied and pasted... (what is this...are they too controversial?)

"STATEMENT OF CORE VALUES
Our commitment is to add value for Prairie farmers in every aspect of our business.

OUR CORE VALUES:
Create value for farmers
Build a results-oriented enterprise accountable to the farmer.

Deliver service excellence
Be dedicated to a customer focus in all we do.

Develop great people
Respect, develop and recognize people our most valuable resource.

Demonstrate integrity
Maintain the highest standards of ethical business conduct.

Be world class
Demonstrate an uncompromising commitment to excellence.

Embrace innovation and change
Create and implement new and better solutions from winning ideas."

"About us
Vision, mission, and goals
Vision
Canadian farmers innovatively leading the way in the global grain market.

Mission
Creating a sustainable competitive advantage for farmers and customers through our unique business structure, innovative marketing, superior service, profitable investments and effective partnerships."

"Goals
-To be viewed by customers as a reliable supplier of consistently high-quality products and services

-To be flexible and responsive - able to take advantage of market opportunities that emerge

-To have legal authority to operate within our existing CWB mandate in international trade agreements and recognition internationally that we operate on a fully commercial basis

-To manage corporate and financial risk in the best interests of the CWB

http://www.cwb.ca/public/en/about/vision/

I read: "THAT WE OPERATE ON A FULLY COMMERCIAL BASIS."

I am waiting...

[parsley]

Better check these tommorow.

Like the Code of Conduct, the CWB will have an incamera Conference call tonight, and mofify all of them!

Parsley