06 PRO's

[Ron]

anybody like?

[charliep]

Wheat - no surprises.

Barley (malt and feed) - Ouch. And the advantage of having barley under the CWB is _______?

[charliep]

Should leave for this PM but a first cut at the 2006/07 basis contract is $17 over for CWRS (MGE) and and about $30 under for CPS (KCBT).

CWRS conservative but ... ah, what the heck. CPS wheat (and for that matter the new varieties of hard red winter) - what is the true value of this crop?

Just as thought - likely a time to consider locking in the futures side of CPS (either sell KCBT or do through the CWB) and wait for the basis to strenghten.

[sawfly]

charlie
any particular reason i shouldnt price some HRS, and wait for a stronger basis.
won't hold you to anything, but that was my plan to price 10%
any thoughts apprec.

[charliep]

Sawfly - Would consider spring wheat as well at the futures level (let basis ride) and maybe even locking in a fixed price contract.

Would highlight the first cut at fixed price contracts/basis.

http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/2006_index.html

I note the fixed price contracts are above the PRO's in most cases with the exception of durum. Basis levels are not as bad as what I thought - particularly for hard red spring wheat/MGE.

What are others thoughts on strategies?

[northernfarmer]

Gotta be blunt here - why do we continue to sit back and let the board do this to us? I am absolutely pizzed about the basis level they put forward for winter wheat. Where is the logic? And this was a program put in back in 2000 to allow for producers to have more control on pricing>>>>

[sawfly]

i did a HRS fpc on 150 and locked in the futures without basis on another 150
we will see what happens

some questions came to light about the force majaure, the insurance you can buy on not being able to fill the contract because of drought hail etc.

Eg. say i contract 100 tonnes , at 5 different times during the year. = 500 tonnes
and i buy 100 tonnes of insurance before the may 1 deadline.
the crop fissels and i only produce 400 tonnes
can i use the insurance on any of the contracts i want.
theres a info meeting this week so i should find out then.
i could see getting the insurance if i was 80-100% contracted before harvest, but other than that i dont know benifits there would be.