Cropduster,
The basis SHOULD have come off the last couple of weeks... instead the CWB took more from our PPO contracts.
The risk management system leaves the CWB free to raid the contingency fund... to prop up the pool... just as they are propping up the pools with PPO revenues by their own admissions.
This 'late' pricing premium... is a farce... the basis is the real issue... and the negative $21 basis on CWRS that is $40/t out of wack... just netted the CWB contingency fund a massive influx of cash... that can now be sent to the pools to pay for the hedges... because the CWB uses the pools to hedge the PPO's... over the long haul of the pool/crop year.
Initial CWB hedges are removed... otherwise the CWB should be easily capable of paying profits on hedge positions... when they accrue to a grower. BUT the CWB won't pay... which is proof enough... the risk management position does not exist outright a few months after the hedge is done by the grower.
The pool is the hedge... in the end... and the contingency fund is manipulated to pay the pool. Proof?
The $6/bu positive basis paid off the PNW this spring... SHOULD have meant massive profits in the Contingency Fund... instead Chairman Ritter insisted there were massive 'problems'... in the PPO's... which means only one thing!
Risk Management LOSSES.
It SHOULD have been be impossible to lose money on PPO's... if a decent set of guidelines were in place governing their management!
The first 4 years (till 2005)of PPO's are proof enough that this was not only possible... but practical and achievable!
THESE 'Single minded' directors fumbled the ball... messed up big time... and now want to blame the markets!
i CALL THEIR bluff! a FORENSIC AUDIT WOULD PROVE MY POINTS!
The basis SHOULD have come off the last couple of weeks... instead the CWB took more from our PPO contracts.
The risk management system leaves the CWB free to raid the contingency fund... to prop up the pool... just as they are propping up the pools with PPO revenues by their own admissions.
This 'late' pricing premium... is a farce... the basis is the real issue... and the negative $21 basis on CWRS that is $40/t out of wack... just netted the CWB contingency fund a massive influx of cash... that can now be sent to the pools to pay for the hedges... because the CWB uses the pools to hedge the PPO's... over the long haul of the pool/crop year.
Initial CWB hedges are removed... otherwise the CWB should be easily capable of paying profits on hedge positions... when they accrue to a grower. BUT the CWB won't pay... which is proof enough... the risk management position does not exist outright a few months after the hedge is done by the grower.
The pool is the hedge... in the end... and the contingency fund is manipulated to pay the pool. Proof?
The $6/bu positive basis paid off the PNW this spring... SHOULD have meant massive profits in the Contingency Fund... instead Chairman Ritter insisted there were massive 'problems'... in the PPO's... which means only one thing!
Risk Management LOSSES.
It SHOULD have been be impossible to lose money on PPO's... if a decent set of guidelines were in place governing their management!
The first 4 years (till 2005)of PPO's are proof enough that this was not only possible... but practical and achievable!
THESE 'Single minded' directors fumbled the ball... messed up big time... and now want to blame the markets!
i CALL THEIR bluff! a FORENSIC AUDIT WOULD PROVE MY POINTS!
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