PNW Basis for Hard Red Wheat

[TOM4CWB]

Charlie,

I see the PNW basis for DNS Mar.09 is about $1.80/bu OVER MGE... at $11.50/bu, provided by US Wheat associates

How can the CWB justify stealing $80/t off our FPC for Alberta?

[charliep]

Won't comment on the last question.

On the first statement, the answers might be:

1) Yes. This is an accurate reporting of current prices.

2) Highlight how the US has a system of reporting daily sales that both buyers and sellers cooperate in providing information to USDA (mandatory). This would add clarity to the plus or minus 500 mln discussion that goes on.

3) One days cash sale does not a pooled price make. CWB payments are based on sales over a 15 to 18 month period and to a number of different markets.

4) A tirade that indicates the current CWB producer pricing options risk management strategy across an 15 to 18 month period is unworkable and how they either need to shorten pooling periods or allow PPO risk management strategies against actual cash grain sales.

Your choice.

[charliep]

Will provide the link for US Wheat Associates so everyone can look at their numbers.

http://www.uswheat.org/priceReports/doc/64AC8EA880D5D391852574AD006901C3?OpenDocument#