CWB taking FPC funds to hold up Wheat pools

[timm]

the basis could be locked in anytime until oct.31.it was at 15mt recently .462mt net was possible but a classic case of greed took over.

[Hopperbin]

Basis according to CWB is .462 but add in the fact that 1.7 is deducted even though only half the grain makes it to port should you not add .85 to the .462 to get 1.262? But wait July basis is .8

[timm]

462canadian$ mt net less deductions at elevator was the best price offered by the cwb so far for cwhr.we farmers are such wonderful marketers but how many took advantage of this.one push of the button on e services..

[bucket]

timm

please explain more clearly how you get 15mt for a basis. The way the cwb explained it to me was if you locked in the futures price early then you don't have the adjustment factor which just leaves the basis and it has never been positive this year.

[timm]

futures only in feb at 477 on a basis contract ...then lock in 15 basis 2 weeks ago... 17 now on cwhr

[charliep]

should toss up the CWB historical charts to put
some reality to the comments. The $450/tonne
plus 1CWRS 13.5 (like $15/bu canola) was only
available for a short time in March.

http://www.cwb.ca/public/en/farmers/producer/hi
storical/pdf/2008-09/0809fpcbpccharts.pdf

Will note that current wide differential the PRO and
the fpc contract. Tells me the PRO is way over
valued in the current market and likely has another
$20/tonne drop in a couple of weeks. Why they
didn't put out a new one with the barley mid
month PRO is beyond me.

[bucket]

timm

You better call the cwb because I talked to them this morning about a fpc I priced in feb. There has never been a positive basis. And if you contracted a fpc early the adjustment factor doesn't apply but the negative basis does.

I may be wrong but I think a call to the cwb is in order on your part because you may be misleading people.

[charliep]

Actually the basis values are on the CWB historical charts. They have varied from $30 under on Feb. 25 when released, strengthened to $10 ish under in May and have held $15 to $20 under in ever since. The best basis since August (including a positive late signup adjustment of $15.25) was $2 under - you had to sign the contract that day (fpc or basis only).

As a comment, I wish the CWB would graph the basis including the late adjustment factor - this would be a truer representation of the real payment adjustment on the day of signup. The futures only contracts could then be draw up with the late payment basis adjustment in the contract.

I encourage all to print out the fpc basis levels for the past 5 years and compare to the current crop year.

[bucket]

Charliep

Where do you get the charts?

I meant to say there has never been a positive basis this crop year.

But furthur to my comments in regards to timm. If you think because you signed a contract on a certain day in feb and the basis on a certain day in oct is an effective market program, AND in the meantime american farmers or farmers in any country in the world have had numerous opportunities to price equal or better prices, WELL QUITE FRANKLY YOU CAN KEEP PATTING YOURSELF ON THE BACK for your keen marketing skills. But I think, quite frankly, you are nuts.

You should be able to have had plenty of opportunities to get the prices you are bragging about instead of saying you priced one component in feb and another in oct. Maybe you could tell us the exact day you had to price in feb and the day you priced in oct to get the returns because I haven't figured it out yet. I don't care but back up your numbers. Personally I would rather have a program that I call in, ask the price for a delivery time period and if it works for my cashflow I would take it if all the market indicators say its a fair price. Then I can concentrate on production and not what day I have to be johnny on the spot to price a component.

[charliep]

The CWB has historical charts for fixed prices
contracts, basis, futures in their website.

http://www.cwb.ca/public/en/farmers/producer/hi
storical/pdf/2008-09/0809fpcbpccharts.pdf

[charliep]

Tried the link and something blow up. Try the
below.

http://www.cwb.ca/public/en/farmers/producer/histo
rical/

[timm]

CWRS 13.5...futures 477.10 on Feb.26/08.Most spring wheat in our area averaged 60-65 bu/a.

[TOM4CWB]

timm,

On Feb 26/08... the cash price in Sweetgrass MT. was $22/bu. ($808/tUS) We had 90 days to deliver.

And a futures only was $477/t with about a negative $29/t. basis at that time.

I don't see how you thought that was a fair deal... NO Act of God Clause... no ability to transfer wheat from 07- to 08 crop year... and they dry dirt we has did not even allow our winter wheat to germinate till after the May long weekend.

Hind sight is always 20/20... which is the favorite CWB tactic. The historic basis and PNW export offers this past winter and in 2008... clearly show the CWB extracted a massive toll from FPC holders... no matter when they fixed the basis... in both 2007 crop and 2008.

[timm]

why compare an obvious cash squeeze to a dec new crop futures ...your political paranoia clouded your marketing ability and u missed the boat t4cwb...its obvious

[TOM4CWB]

timm,

How would you know what our farm sold when?

We have to fight for every cent... why should a bunch of deceptive story tellers get away with taking our rain... I expect the Multi's to maximize extractions... they don't make any claims to the contrary.

The CWB only justifies and makes the toll even higher... all in the name of doing the opposite. That is what really gets my intestines and turns them in a knot!

On contract with them... does it pay well?