Decision Day Daily Price Contract

[charliep]

Today is the last day to book tonnage for the daily price contract. Pricing starts August 1. I suspect could achieve the 500,000 maximum anyway so I would not delay a decision.

Recommendation for everyone who participates in this chat room is to book at least some volume (even if just a "B" train). My experience is the best way of learning about something is to try it. Again, it should be part of a plan with some sold with a fixed price contract, some a DPC and the remainder priced into the pools.

[charliep]

Talked to CWB and the 500,000 tonnes has been booked. You now have the fixed price contracts for 2006/07 or have to wait until 2007/08 to use the daily price contract.

[TOM4CWB]

Charlie;

Where did the 500,000t come from?

"What is the Daily Price Contract (DPC)?
The DPC, program for 2006-07 is a pricing option for wheat that provides producers with an opportunity to capture a daily cash price based on U.S. grain elevator prices. The DPC is another marketing choice for producers, enhancing a mix of pricing options available through the PPO programs.

How does it work?

Three steps involved
Step one: Sign up tonnage to the program from June 1, until July 21, 2006.
Step two: Price the reference (base) grade between August 1, 2006 and July 31, 2007.
Step three: Apply deliveries against the contract thereby locking in the cash spreads between the applied grades and the reference grade.
Note: Step 2 and 3 can occur in reverse order."

We were told we had till the 21st 8:30CT... now it was the 20th 8:30CT?

What is this?

[charliep]

You will have to ask the CWB. The 500,000 tonnes is not in the press release but is in the user guide (page 4).