Just a note to let everyone know the CWB has updated their tables on the Fixed Price Contracts, Basis Levels and Early Payment Options. They also have good graphs comparing the DPC to the FPC/PRO values as well as protein spreads.
http://www.cwb.ca/en/contracts/ppo_workbook/historical.jsp
A couple of comments.
Realizing there are lots of factors that go into your marketing decisions, I would be using current price levels to do at least some pricing using fixed price contracts with the need to generate cash flow on early deliveries the prime driver.
To bad farmers had to sign up early on the daily pricing contracts. The alternative wheats are the ones who have enjoyed the most benefit over the FPC/PRO. When the crop year ends, someone will have to help me understand why this is. Mayber getting us ready for the new world where traditional grading and from there pooling only applies to hard red/white spring wheat and durum. Other wheats will be cash priced (either inside or outside the CWB marketing system).
http://www.cwb.ca/en/contracts/ppo_workbook/historical.jsp
A couple of comments.
Realizing there are lots of factors that go into your marketing decisions, I would be using current price levels to do at least some pricing using fixed price contracts with the need to generate cash flow on early deliveries the prime driver.
To bad farmers had to sign up early on the daily pricing contracts. The alternative wheats are the ones who have enjoyed the most benefit over the FPC/PRO. When the crop year ends, someone will have to help me understand why this is. Mayber getting us ready for the new world where traditional grading and from there pooling only applies to hard red/white spring wheat and durum. Other wheats will be cash priced (either inside or outside the CWB marketing system).