PRO's

[craig]

While everyone especially board supporters can smile with glee about the PRO's, I would agree with Charlie that PRO's are only an estimate and not reality till the end of the year. What people need to do is look beyond the numbers. What no one is commenting about is the fact that the PRO's have lagged so far behind the PPO's in the last month. What impact has this had on the % of grain sold through the pool accounts vs PPO's. The board may have put themeselves in a predictment. They need enough sales using the pool accounts to balance the lower early sales with later higher price sales. Without a strong PRO they encourage producers to sell using PPO's. I would suggest the CWB has been scrambling all year to react to the implications of a record market. Sadly we can only speculate and some of the reality will not be known till well after the fact( annual report). Will hope the PPO's will not be used to subsidize the pool accounts as we have seen in the past.

[TOM4CWB]

Charlie,

One must ask the question how much cross subsidisation is going on between the FPC people and the CWB Pool.

To have a $20/t premium to get a 100% EPO isn't reassuring either.

What about the $18/t Adjustment CWRS & 21/t 22/t CPS/CWRW factors...? THis is pure cross subsidisation of pool; and a massive cross subsidisation of CWRS by non-CWRS wheat!

Ontario Wheat growers Board should be a good indicator of REAL market signals on these spreads... giving the CWB a quality gift because of the difference between Eastern and Western Canadian grades. $8.65/bu for non-CE(Eastern)RS vs $8.37/bu@ the growers truck... being dropped in the elevator pit.... virtually a farm gate price!

We are very fortunate to have Ontario Board people to show us accurate determinations of REAL market prices/spreads in Canada's domestic market place!

Now... what do we do about the problem?

[northfarmer]

I will see it in my bank account to beleive it.........twice in recent memory, reminded to me by one of my grain buyers, the pro was up singificantly in the fall to only crash by spring to much lower levels, one of these times I remember it conciding with director elections of the CWB.....it is only an estimate, it is being propped by the CWB cross funding from so called cash pricing options, so i will continue to incrementally price my dpc's and use fpc's on hrww....we did notice the all of a sudden lower basis in relation to to HRS from HRWW and did some more on that one...good to see the pros up, but nothing would replace my glee if i had unfettered and complete freedom to market my own production......please free me oh masters!!!!!!!!

[TOM4CWB]

Charlie,

Apples to Apples... the Ontario elevator price tells an interesting story.

Hard Red spring is worth $307/t no protein White and Winter(CPS) is worth $317/t.

The amount of fudge factor in CWB pricing should make any non-CWRS growers blood boil... and being short at the very least our protein premium on cash prices shouldn't impress CWRS growers either!

The CWB has some massive adjustments to make... they have NOT lifted from their deep slumber yet!

[just_wondering]

ignore the part of my post that says add $5.00 I guess it is already figured into the calculator.
Goes to show don't believe everything you read on the Internet

Anybody even board supporters can you tell me why CPS and winter wheat get the huge deductions I realize this is not normally the case of Kansas being over Minni. but WTF