US Dollar up to 81.85 overnight

[Incognito]

AWB distributes $311 million from 2002 Pool ( 09/10/2003)

“While international wheat demand remains very sluggish and the strengthening Australian dollar continues to put pressure on EPRs, AWB’s hedging program is well advanced and is reducing the impact on pool value,” said Ms Scales.

AWB increased new season Pool estimates ( 04/08/2003)
"AWB is managing the 2003 Pool physical sales and hedge program on behalf of growers to take advantage of upside movements in price and has been able to reflect this through an increase in new season EPRs.

Increase for 2003 Pool estimates ( 18/11/2003)

“The further strengthening of the Australian dollar has offset some of the gain in wheat prices in Australian dollar terms, although our strong hedging position is insulating the impact of that movement on the National Pool,” Ms Scales said.


How many people do the CWB have in the Risk Management Department?

[chaffmeister]

Incognito:

Gotta love it. AWB proudly reports how their "hedging program is well advanced and is reducing the impact on pool value” and how their "strong hedging position is insulating the impact of that movement on the National Pool”. Meanwhile, the CWB is doing pretty much the same thing (in forex) but chooses to blame the deficit on strength in the dollar. I guess if the CWB had said they had a “strong hedge position” on the dollar it would have made their grain merchandising results look even worse.

Interesting that the AWB “is managing the 2003 Pool physical sales and hedge program on behalf of growers to take advantage of upside movements in price and has been able to reflect this through an increase in new season EPRs”. Let’s see… upside movements in price AND increases in EPRs…what kind of hedge can do that? In very simplistic terms, it may be that they hadn’t sold or hedged much at all and the market was simply going their way.

I guess I’m a cynic - you and I both know from personal experience you can’t always believe what you read in the papers. All your clippings are from a year ago. Any idea what they reporting this year?

Don't know how many people the CWB have in the Risk Management Department. Why do you ask?

[TOM4CWB]

Incognito/Chaffmeister

Heard one anicdotal reference to this issue this spring.

In a Board mtg, the CEO said in frustration, "Just tell us what you want us to do!"

This is a matter of planning and process... not guessing and picking a high or low in the market.

Pool processes of leaving risk with pool holders is a principal the majority of CWB Directors have practiced in practical terms.

Lefty Directors have led the CWB on this policy.

Sorry guys, but what we have is our own fault... we fail to elect a majority of directors who respect individual property rights... and the result is exactly what we asked for!

Visit www.tom4cwb.com and tell me what you think!

[charliep]

Just a note we have what appears to be a Republican win and a weaker what appears to be a slightly weaker dollar (Canadian loonie up almost 90 points and Euro up 100 points. What are you reading about the impact of the election on currency in your newsletters?