CWB Variety Survey

[bluefargo]

I hate acronyms. Mainly because I'm always the only idiot in the room that doesn't know what they mean.
I'll bare my ignorance once again. What does POT stand for?

[charliep]

Saskatchewan Potash Corporation. It is the letters you would use to get a share quote.

If the meltdown carries on, it may also be the more medicinal product to help sooth farmers and investors nerves.

[charliep]

As I have indicated, the calculations around class, grade and protein spreads is one of the least understood and perhaps most important components of CWB price pooling. All CWB non durum wheat sales are stuffed into one pricing pot and market signals/returns are fairly arbitrarily divied out. 99.99 % of farmers don't care and I think this has been to their detriment in terms of market signals around what to grow.

Off topic but I ofter wonder why the CWB runs things like producer payment options for individual wheat classes of the futures markets that are closed to that class characturistic (MGE with CWRS/CWHW/CWES, KCBT with CWRW/CPS and CBT with SWS). Yet all classes remain pooled with the big boy - CWRS. The real impact is the new world is the link between producer options and the pool versus the risk of different market moves on CBT, MGE and KCBT and the impact on farmer risk for some who uses PPO.

Perhaps a place to start is separate pools for the different classes of wheat. Again, if they can separate the PPO by class, then the CWB can do the same for overall pool with the end result better market signals/reduced risk (also lower risk management).

[charliep]

should be lower cost risk management.

[Choice2U]

Charlie....your last comment about POT just killed me. I swear I laughed aloud in my office for 50 seconds.

[bluefargo]

Thanks for the explanation Charlie. Now I can follow the discussion till the next acronym comes along.
In the meantime I'll be singing the song " Don't Bogart that joint my friend"

[furrowtickler]

Good to see some humour there charlie,we need that more often.