99 crop delivered on fixed price contract?

[Ron]

I have 180 tonnes of #2 hrs from 99 that I haven't been able to deliver to my local elevator. Can I deliver this into the 2000 crop year using my A series contract for 1999 that has not been filled? If so can I use the fixed price contract to get full payment upon delivery? I am hoping to have grain in elevator this week and wait untill new crop initials are out to decide which year to price it in. Thanks for any help

[charliep]

The short answer is yes provided you fall within the CWB delivery calls/have a fixed price or basis contract. The rules are that 1) You are still able to deliver on the 'A' series (hasn't been terminated). 2) You have signed a fixed price or basis contract either in the Apr., May or June contracts or are planning on signing the July one. 3) Your ideas are right in that you deliver on on the old crop contract/put your grain on a storage ticket. This will have a cost (keeping in mind the first 10 days are free storage). The grain company you deal with may waive this cost but this is their decision). You would then price in the new crop year/phone the CWB to act on the contract. 4) I want to highlight Brenda's note about this time only having 3 days to sign up (until July 31) when the new crop kicks in. My feedback is that the CWB is not likely to extend the fixed price or basis contracts into the first part of the 00/01 crop year but rather evaluate this years results/come back on board with the program in the 01/02 crop year. Long and short on this one is you snooze, you lose (no action on this go and the opportunity will be gone). 5) Just so you are not shocked, my suspicion is that a lot of the premium in the June fixed price versus 99/00 pro is likely to be gone. The markets have collapsed in the past two weeks and unless something happens to pull wheat prices higher, the July 00/01 PRO/fixed price contract are likely to be down with a $10 decline not out of the question (fixed price contract equal the 99/00 pro). The fixed price contract still may be worthwhile for cashvlow reasons (you get your total payments with 2 weeks if you use the fixed price contract in the new crop year). Other thoughts on this topic.