CWB fixed basis for new crop looks not bad

[poorboy]

24/t over the minneapolis on hrs wheat, looks not too bad for new crop acres does it?

[TOM4CWB]

Poorboy,

The Basis today and for forward months is $1.50USD/bu DNS 14Px which is equivelent to a 1CWRS 13.5.

This has been a relatively stable number for some time.

http://www.uswheat.org/priceReports/doc/382B9E980B33AA3885256FBA007C3303/$File/pr030405.pdf?OpenElement#

@1.23 conversion, this is $1.845/bu or $67.79/t over MGE quoted futures price.

This $27/t is also approx. to the Oct 30/04 Basis offered by the CWB... which is also short a significant amount to arbitrage the cash PNW March 05 today.

http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2004-mhrs-20050225.html

This shows the last CWB quote @ $3.57USD/bu MGE for #1CWRS 13.5 or $162.77CDN/t West Coast price



Being that we could be short as much as $40/t... what would you say?

Will the new CWB Cash price contract offered between June 1st and July 22nd not be a much better instrument to arbitrage Vancouver B.C. prices?

[cropduster]

Am looking forard to the DPC to see how the CWB will screw that up TOM4.Talked to the local Patterson rep and it appears they(CWB) will do the DPC on some Snowbird/Kanata.Any opinions? Are you considering doing Luseland tommorrow nite?

[Incognito]

Starting to bring back memories duster!

You get much rain?

[cropduster]

Hey, Incog, wonder what kind of a reaction you`d get.....sorry, guess you`d have to make a reservation...Snowbanks receding rapidly although only a few sprinkles.Am hoping this isn`t our total moisture allotment for the whole year!!

[TOM4CWB]

Cropduster,

Have some wheat to haul tommorow... but am going to try to make it to Chatenay's Carsland 10:00am meeting on Tuesday. He will have some Ontario info on Choice marketing of the reliable type... real competition!

HOPE as many as possible can make it there... should be a good meeting!

[charliep]

Just a note historical basis information can be found at the CWB web. To view 2004/05, go to:

http://www.cwb.ca/en/contracts/ppo_workbook/pdf/2004-05fpcbpccharts.pdf

Page 12 has the specific stuff on 1CWRS 13.5.