Just a couple of notes/ideas on CWB producer pricing options.
For wheat, your best alternative is to go the price pool route today or the 80 % EPO. PRO for 1CWRS 13.5 (port) is $196/tonne. Fixed price is $180.72/tonne with a basis of $33.64/tonne. No guarantee on price - still a forecast. One of the best basis offered relative to history so may want to lock this in. Daily pricing contract - $184.39/tonne. No comment. If you are cash flow needy, your best alternative is one of the EPO. Your 100 % EPO would give you the same return as the FPC (cost $17.25/tonne) and leave the ability to enjoy any rally over $196/tonne.
Will let you do the numbers for the other wheats.
The fixed price contract on feed barley is $125.40/tonne (port) versus PRO of $127/tonne. Current feed barley prices in Portland (good proxi for CWB business) is about Cdn $135/tonne. If the CWB is your best feed barley alternative, sign a fixed price contract (take your money and run).
Malt barley PRO (SS 2row) is $167/tonne (port) versus a fixed price contract of $164.71/tonne. Again, you are likely best off using the fixed price contract to improve cash flow.
For wheat, your best alternative is to go the price pool route today or the 80 % EPO. PRO for 1CWRS 13.5 (port) is $196/tonne. Fixed price is $180.72/tonne with a basis of $33.64/tonne. No guarantee on price - still a forecast. One of the best basis offered relative to history so may want to lock this in. Daily pricing contract - $184.39/tonne. No comment. If you are cash flow needy, your best alternative is one of the EPO. Your 100 % EPO would give you the same return as the FPC (cost $17.25/tonne) and leave the ability to enjoy any rally over $196/tonne.
Will let you do the numbers for the other wheats.
The fixed price contract on feed barley is $125.40/tonne (port) versus PRO of $127/tonne. Current feed barley prices in Portland (good proxi for CWB business) is about Cdn $135/tonne. If the CWB is your best feed barley alternative, sign a fixed price contract (take your money and run).
Malt barley PRO (SS 2row) is $167/tonne (port) versus a fixed price contract of $164.71/tonne. Again, you are likely best off using the fixed price contract to improve cash flow.
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