Oct. 31 is Deadline for the 2004/05 Fixed Price/Basis Contracts

[charliep]

Just a note that tomorrow is the last day to sign a basis contract or sign a fixed price contract directly. That is unless they change tomorrow or I have missed a press release.

What strategies come out of this?

Sign a fixed price contract? If you are bullish (don't now if you are or not), do you replace with a long position or a call>

Sign a basis contract and let the futures side float? Are you a bull or a bear on wheat? Your one risk is currency. What month?

Is it better to just use the EPO alternative? What percentage?

What would a farmer that is strapped for cash flow do differently than a neighbor that is well healed? What other factors are in this decision?

[charliep]

No one seems to be willing to comment so I will toss in my two bits.

If cash flow is an issue, I would be signing up CWB basis contracts on some portion of my expected deliveries. The month will depend on when I think it will move/tightest money needs.

Balance is the key here with a marketing plan having some portion priced using fixed price contracts, some portion committed under basis contracts, other portions held open to either participate in the pool or use EPO contracts.

JUST A NOTE OF HIGHLIGHT FOR ANYONE WHO WANTS TO CONTRACT ADDITIONAL WHEAT SUPPLIES OR HAS NOT SIGNED A CONTRACT YET. IF YOU DON'T SIGN A BASIS CONTRACT TODAY, YOU WILL NOT BE ABLE TO PARTICIPATE IN ANY MORE OF THE PRODUCER PRICING OPTIONS OUTSIDE OF EARLY PAYMENT OPTION.

[Ajax]

I have decided that if the grain company really wants my grain after the grade standers are decided on, they will sign me up an 'A' series contract at a later date.

[hgb]

"A" series contract can be signed after October 31. If done via the internet claim 2 grain companies I spoke with. AU says 1 extra week and Agpro claims 2 weeks.

[melvill]

Make certain you contact the CWB info desk at 1-800-275-4292 before you take the grainco's word on late sign-up, because on Thursday one of them told me that they're not extending the sign-up date for the A Series

[mcfarms]

With due respect to those that think they should have the right to sign up after the deadlines, sorry you don't and if the board allows you to that's a great deal of the reason why we got hammered in 2002-03. Instead of getting later we should be moving the "a" series up to October 15th to get quality informaion and availability to the customers and market sooner rather than later. Extending sign up deadlines is a mistake.

[JACKFLASH]

I appreciate that AU is keeping the contract open a few more days. There is alot of wheat still in the field here and we are having a hard time, figuring out what to contract.