Who Makes Money On Volatility?

[bucket]

One thing is for sure - the CWB does NOT make money on volatility or at any other time for western farmers period.

[agstar77]

Try this link, very good article on disconnect between futures and cash. NYtimes.com/2008/03/28/business/2commodities.html?_r=18ref=todayspaper&0ref=slogin . Diana B. Henriques, Todays N.Y. times.

[agstar77]

T4 I don't use the risk management options and since I am not on the B.O.D. , I cannot answer all your questions nor can I judge whether they are valid. All I can say is that if you want someone to cover your risk, you have to pay a price. Is that price fair? I really can't say. Would you pay a similar premium under an open market, possibly.

[agstar77]

Further to the Conagra deal, one of the perks for the acquiring hedgefunds, is the intelligence on grain movement. Conagra is responsible for commodity transport. So if you know the volume of transport, you can aid your commodity trades. Very interesting, so the farmer is on the bottom of the food chain!

[parsley]

Nope. In organics, the farmer is at the top of the food chain.

Parsley

[TOM4CWB]

Agstar77,

The $22/bu that we were offered for our wheat in Coutts... is proof enough... that the Canadian system of grading, basis, and delivery is not extracting any kind of premium for our farm.

It is about time we all woke up... again... and understood our over regulated mess of a marketing system needs a major overhaul... As if we didn';t know.

Guess what the stats are for total farms that gross over $250,000 per year in Alberta... in the 2006 Stats Can census...

7,500 of us left.

That should tell us all a BIG story.

The system is broken... I don't see the CWB doing anything to help fix our problems.

Now... once again... we are told no DPC's for 2008 crop... the CWB is backing away from cash pricing that is market driven and responsive to international pricing.

There is a major risk management capacity problem at the CWB.

[agstar77]

Similar stats for U.S. farmers invalid reasoning on your part. Increase in farm size due to the squeeze on margins an the inability of individuals to get into farming. Add to that the aging farm population and you have your reason for farm # decrease.

[TOM4CWB]

Agstar77,

I suppose you didn't answer my question... because you are admitting the CWB has done nothing to make our situation better for young grain growers...

In fact for those who took FPC... and got an extra $60/t deducted from their take home payment... over and above what US growers got deducted... how do you reconcile your CWB position that it 'helps' young grain growers get started?

How does bringing down folks to the lowest common denominator... help young grain growers make ends meet?

Where exactly is the premium... the CWB has promised to extract for us... especially on our FPC's?