CWB old crop prices, fall off the cliff again

[TOM4CWB]

Charlie;

DID you notice the June 13, CWB offering prices?

Obviously they are the lowest this crop year...

April 1st, St Lawerence offering price was;
1 CWRS 13.5% -- 260.45

June 13th, St Lawerence offering price was;
1 CWRS 13.5% -- 227.60

Thunder Bay CPS offering price was;
1 CPSR 192.06 on June 13
1 CPSR 221.48/t April 1st, with the CWB PRO $216/t

Obviously the CWB is selling the grain far below initial price, with the pools in Big deficits...

Or am I missing something....

I did fixed price contracts that will make the CWB $30-40/t profit, and I will get 10-15$/t less than those who are depending on doing nothing, and letting the CWB risk manage their grain sales...
WHAT A DEAL!

[TOM4CWB]

Charlie;

DTN reports this;

"06/13 17:21
U.S. cash-grain prices weakened today, says OsterDowJones, finding most markets with losses of around 1-3 percent for the week, largely due to plentiful spring rain, decreased demand and fears of growing surpluses.

Spot grain futures lost about 2 percent today for corn, soybeans and oats -- plus 3-6 percent in wheat -- meaning that spot-positioned contracts closed out the week with losses of 17 cents a bushel for soybeans, 10 1/4 cents in hard red spring wheat and some 3 to 4 cents for SRW and HRW wheat."

Yet the CWB offering price between June 12th and 13th did this;

June 12: 1 CWRS 13.5% -- 235.65
June 13: 1 CWRS 13.5% -- 227.60

$8.05/t for 1 CWRS 13.5

June 12: 1 CPSR -- 200.94
June 13: 1 CPSR -- 192.06

$8.88/t for 1 CPS Red

Why would the CWB drop the offering price so much more... in one day, than US prices?

[charliep]

These prices are just one indication of actual selling levels. You are right in that others are likely lower (these prices are in many cases like sticker prices at a car dealer ship).

No way of knowing what the CWB has sitting in the pool accounts to date.

What I do know:

1) Anyone who signed an early pricing option late last fall is money ahead. Will be interesting to see how well this pool risk is covered. Also will need to make sure none of the contingency money in the producer pricing options makes its way into the early pricing one.

2) The CWB shouldn't accept any wheat offered on the "C" series contract. Shouldn't be a lot left but every kernel brought in on this series will be a net drag on the pool returns.

3) Need to watch how pooling inventories are valued at the end of the pooling year. Again shouldn't be a lot but worth monitoring.

[TOM4CWB]

Charlie;

Instead of the CWB not accepting series C contracts, the A, B, and C contracts need seperate pools.

THIS would solve many issues, create a measure of transparency, and leave cherry picking out the formula.

I wouldn't hold my breath on ths happening any time soon.

If you look at how the contingency fund works, all PPO's are in the same fund, so the CWB can take the profits from my FPC and apply them to the EPO's on the pool 90% payment... and no-one can know what happened. THE futures done from FPC's that were profitable, can offset the EPO, and the FED Initial Payment still will make the CWB a profit on my Fixed Price Contracts. It is impossible to track CWB risk management, according to the formula the CWB uses.

Quite a setup the CWB has, no accountability, the CWB makes their own rules as they go, and PPO contracts state I must pay all of the CWB's legal fees if I try to challenge what they have done or are doing.

Only in Canada you say...

[TOM4CWB]

Charlie;

I see the ThunderBay offering price of 1 CWRS 13.5% -- $202.86/t, down from $208.16 Friday. Strange why the CWB drops the domestic offering price, but not the port prices. With the 3CWRS at $195.56/t, it is strange how the CWB is pricing, to say the least...