The CWB Basis Charges

[JACKFLASH]

TOM4CWB

Have you looked at the CWB's exchange for physicals program? What do you think?

[TOM4CWB]

Jackflash;

The program could work IF we were given a basis upfront... but the CDN$ is hard to hedge because of contract size... if I remember right it was $100,000.00 contracts. TO be forced to hedge this amount of wheat... at one time... when a person doesn't even know the basis is ... simply absurd.

The CWB simply are living on a different planet than farm managers that are actually risk adverse...

As farm managers we are responsible to mitigate risk... but the CWB expects us to create more total risk... than the hedge on a futures alone would reduce risk.

Thus the CWB answer for early hedges (before PPO's are avaliable) is a slick clever trick to misrepresent a futures exchange program as a significant risk management tool for the majority of "designated area" grain farmers.