Who gets the short end of the CWB pool stick?

[Fransisco]

Will the CWB take/accept Series C contracted wheat?

This winter, ahead of the Series-B deadline the CWB advised farmers that the CWB may not accept Series C contract if such tonnage would negatively impact pool returns. That would seem to be the case today.

Soooo... what to do? Who to piss off?

1) Accept more lower priced wheat and disappoint those already in the pool by lowering the average 07/08 pool price more than otherwise would...or

2) accept less wheat and disappoint those wanting to sign-up.

[Fransisco]

How committed are all you die hard pool guys to the pool concept?

Do you want price averaging over the entire crop year or not?

[Fransisco]

And who should make that decision?

Cause guess what, it won't be made by you.

[TOM4CWB]

Fransisco,

I understand in some instances the CWB is already accepting some C series grain... they seem to be short.

The PRO today should tell a story... the asking price is still close to the PRO.

[disker]

Hi Guys,
I was at a meeting this winter with the CWB and they were asking for info on how they should handle grain sales when it would affect the pool. The question was that if they needed more wheat at the later part of the year but the pool price was too low to attract wheat away from the domestic market (mostly feed wheat and CPS) to get us to deliver that they would just do a short guaranteed delivery and price contract that would be higher than the pool but excluded from the pooling acccount so that the price would not be diluted by the pool. Basically they wanted to cash buy at a higher price than the pool so they could attract deliveries. Seems odd how they can be so pool oriented until it does not serve the purpose.
Another question is how can the Cwb not want C series deliveries because they have so much sold and do not want to bring down the pool but when the price goes up the PRo goes up exponetially when they still have not accepted that many more tonnes. If they sold so much at the higher price what happened to all the grain sold at the A and B series price. Needs to be some open accounting on how dollars move around between pools and FPC's.
Curt

[charliep]

disker

Good to see the CWB is asking these questions. Frustrating that they are not already doing these creative and innovative things already. My only is whatever they do along these lines has to be consistent year to year and not just based on CWB self interest in a particular crop year. Also need answers to your questions about more openness about how inventory is valued between pooling periods and the relationship between cash pricing and the pools. Risk management also needs to be addressed with the losses documented in the 2006/07 annual report something that should get everyone asking questions about.