CWB 2006 Wheat Prices

[TOM4CWB]

Charlie, Vader;

I have watched the Ontario Wheat Board offer 2006 fall cash prices for months; Why doesn't the CWB offer pricing?

When the CGC Eastern grade factors are taken into account, they have been attractive prices, as well!

What has happened to the CWB on this front?

Why is the Daily Price Contract offered, not avaliable to me on a daily basis, instead of being ended July 23, 2005... with no more sign up avaliable?

[charliep]

Will leave Vader to comment on CWB policy. Would note that December MGE and KCBT are making a run at US $4/bu. Assuming a $20 over basis for 1CWRS 13.5 (MGE), that would provide a new crop pricing opportunity of about $188 in store Vancouver - $16 below the current PRO. Assuming a CPS red basis of $5 under, this would result in a price of about $163/tonne in store Vancouver - $10 above the current PRO. My assumptions on basis could be out.

I heard no feed back one way or the other on what will happen with the daily pricing contract.

[charliep]

Just a note to highlight the CWB announcement today. Starting September 2006, you will be able to lock in a converted futures price part of a fixed price contract for crop grown in 2007. Nothing for the 2006 crop year until Feb. 27 when the first new crop PRO is announced (Grain World).

I also note the opportunity to lock in basis for the designated barley is now a full alternative in 2006. No similar programs for the domestic brewing industry to help them handle their price risk/allow the CWB designated barley pool to handle its basis risk.

[parsley]

.......and nod nod