0% DURUM CWB "B" SERIES ACCEPTED

[TOM4CWB]

Charlie;

I see, no acceptance of any CWB "B" series durum... 100% "B" wheat.

What is the CWB doing?

I went to the most recent CWB internet on:

February 18
Country Elevator News Bulletin - Acceptance Levels for 2003-04 Series B Delivery Contracts

AND it says;

"For elevator managers

Country Elevator News bulletin

The Country Elevator News is intended for elevator managers. The electronic version has been added to the Web site for their reference."

Charlie, my computer will open everything below these 5 notices, but will not open these 5 Acrobat documents.

Can anyone else open these 5?

Bulletin 33: Acceptance Levels for 2003-04 Series B Delivery Contracts

Bulletin 32: Selected Barley Rejections – Important Notice

Bulletin 31: Guaranteed Delivery Contract with an early payment option for feed barley – delivery authorization

Bulletin 30: Sign-up ends for the fourth Guaranteed Delivery Contract with an early payment option for feed barley

Bulletin 29: Early Payment Option sign-up deadline extended

[melvill]

Tom, regarding the "for elevator managers" section of CWB web site, it must have something to do with how you hold your nose or having no cream in your coffee lately, but I could access all those PDF files.

Have you got the latest version of Acrobat Reader? Is it opening in it's own window (faster) or as an add-in for your browser?

[charliep]

Just a note that the acceptance on the "A" series was 70 %.

Perhaps this is an interesting test case for single desk selling.

On the one hand (apologizing for being a two handed economist), the CWB can manipulate supply availability to influence price. The benefit from single desk selling is higher price (could be subject to arguement).

On the other, a central organization has made decisions on its members behalf as to how much they will sell. Unless there is a call on the "C" series, farmers will carry 30 % of their durum into the 2004/05 crop year. Price on this stored durum is unknown.

Questions.

1) What implications does this have on a farm business when everyone is not the same? Can one big marketer represent the interests of all its members? Some farmers may be willing to sell at a lower price if they can get earlier movement and satisfy cash flow needs. Others may be prepared to store if they get paid carry (interest and storage) and have opportunity to benefit from market rallies.

2) What does holding back supplies do in terms of market development? What about substitution of other products/wheats in pasta products?

3) If there are changes to the number of pooling periods or the CWB uses their power to shut off pool accounts early as suggested by some CWB directors, what does this mean for contract and pricing/cash flow issues for managers? The CWB takes a 70 % call on the "A" series durum contract. Prior to the "B" series being determined, durum prices decline. Would refuse all contracts on the"B" series and hold the pool open? Would the CWB take some/all the durum offered on the "B" series and come out with a brand new pricing pool? Would there be a different system of matching up what farmers are willing to offer through the contracting series versus the price the market would offer or will this responsibility remain within the CWB merchandizing area? It would seem to me that CWB decisions will have a much greater impact on overall pool returns.