CWB Programs

[charliep]

No comments so I will stir the pot.

I note the move by the CWB to add an organic wheat pricing pool for on group. Will not endear the CWB to many of you I realize. Does open the door to other things like a domestic malt barley pool (perhaps down to the variety level)?

I also note today's press release on the new durum contracting/delivery system. Only two contracts (no "C" series). Only guaranteed delivery contracts on 4 and 5 CWAD's. The ability to offer a select program combined with the ability to do bin audits to ensure quality and quantity is available. How far away is CWRS from similar programs (eg. to satisfy the Japanese market)?

Add this to the new tradeable delivery certificates and things become interesting. A move forward or simple re-jigging to provide the appearance of change?

[AdamSmith]

Charlie, I'm sure you are aware of what grain prices are doing in the good ol US of A. This is a reflection of many things but most notably weather. Their wheat rally (I'm not convinced that we here in the designated poverty area will actually benifit in any meaningful way) is giving their farmers opportunities that only we can dream of here in Canada. The market is setting new every day, but this will only last for a short while, these opportunities are fleeting yet can establish farms in a solid financial situation for many years after. Our system will ensure we will miss this opportunity, prices will be averaged, Sales for 2006/7 have already been made at last years prices, grain from 2006/7 will remain unpriced and unsold long after this rally has fizzeled and fallen. In fact any grain farmer who thinks they will benifit any more than $10 or $15/t (.25 to .40 per bu.) from a $1 -$2 per bushel rally in Minniapolis and KC are dreaming. I certainly don't expect anything more than this.

So when farmers are in such desperate need for a serious raise the best we will get is a small summer bonus.

So unless farmers can deliver all the wheat they want to off the combine and sell for full market value ( dec minny is at $5.20 as we speak) there will be zero meaningful benifit to farmers bottom lines come this fall and winter.

We're going to miss this party, big time and I am so frustrated by this I can barly even write about it.

[agstar77]

Farmers could never deliver all their grain off the combine no matter what the system. The whole system has been rationalized to death. We need a sustained rally in grain prices.

[silverback]

Sounds like a bunch of make work projects and a way to hire more staff.

Look busy, but don't ever allow farmers to be free.

[Ron]

they are just giving a pile of confusing programs that are a pain the ankle to pretend they have significant changes happening.
Most of us dont have time to follow all this crud they are offering because they change most of it every spring.
It is just to confusing with no real change (speaking of confusing does anybody else hate their website?)

[carebear300]

I just detest their website not very user friendly, or maybe I just don't have much patience anymore. There are definately more options but hard to sift out the important parts of implementation for producers and final dollar figure. Don't know if the problem is in program design or program explanations.

[Vader]

Adamsmith, you wrote that dec. minnie is $5.20 as we speak. The CWB website shows dec. minnie at $5.14US or $5.69 CDN. You can lock in a fixed price contract at $6.18 today. The PRO is at $5.63 CDN which looks quite favorable for a pooled price.

for proper formatting go there yourself
http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/fixed_price/fbpc-wheat-2006-mhrs-20060705.html


Futures Prices - Minneapolis Hard Red Spring
December 2006 $5.14 $209.16 $5.69
March 2007 $5.18 $210.15 $5.72

--------------------------------------------------------------------------------

No. 1 CWRS 13.5, June 22, 2006
(reference grade) PRO
$207.00 $5.63
Fixed Price $227.09 $6.18

[TOM4CWB]

Vader;

OK I have seed in my bin that should have been planted... but the CWB messed up the Hard White IP program in the spring of 2006.

I did my job... couldn't do a DPC July 23 2005; and can't do a FPC 06-07 and deliver on it I am told.

Now I am stuck going to the pool I am told.

What have I missed Vader?

[Incognito]

as we speak refers to while the market is open...not after it has closed.

Take a look at the time of AdamSmith's post and then take a look at time and sales. He is right.

Dec MGE hit a high today of 5.24 - closed at 5.14 1/4 - why does the Blackberry generation get punished for not being able to price while the market is open like the real world?

[charliep]

I'll stir the pot again.

I find the changes on the delivery side more interesting than the pricing tools.

Move to try tradeable delivery certificates.

Cutting back on the number of contracting periods.

Move to split a pooling year into 6 month intervals (old news/feed barley)

Guaranteed delivery contracts.

Ability to monitor/inspect at the farm to ensure the link between what was committed to in the contract (quantity and quality) matches with what is in the bin.

All the above creative thinking will be a necessity in an open market with the CWB as an alternative.

[charliep]

Forgot the ability to contract with farmers for specific grades and quality characturistics almost to the point of being an identity preserved program.

[crusher]

Question about the split pool on feed barley. When is the final payment for Pool A, I assume that it is not December 2006 with the rest of the pools.

[charliep]

Final payment for the "A" series barley was out on June 28 last year (2004/05). No announcement this year.