Just a note to highlight that the first round of the 2006/07 daily price contract posting are on the web. Values made the old/new crop transition with very little change. I have to admit this has been a worry on my part in making the recommendations but has been unfounded.
http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/daily_price/2006_index.html
Unless you are really bullish wheat (and don't know how/are unwilling to use other speculative tools), I would pull the trigger on any old crop pricing (grain delivered 2005/06 and priced new crop) relatively quickly. Lots of things that can happen on futures, basis and protein premiums (both good and bad) so I like the idea of having old crop priced/money deposited in the bank. I can live with an 1CWRS old crop price of $4.60/bu (Alberta), 3CWRS $3.65/bu and 1CPSR/W - $3.80/bu.
Was at a meeting yesterday with the CWB where discussions around cash pricing (even within the current CWB single desk mandate) went no where. So I am going straight to the masses. I note the daily price contract has been an effective tool and added value to farmers who have participated. Why not move to more of these type of programs (evne within the current mandate)? Why the artificial deadlines? Are the CWB issues around managing risk the pooling system the same as a farm managers? Whose interest should come first?
http://www.cwb.ca/db/contracts/ppo/ppo_prices.nsf/daily_price/2006_index.html
Unless you are really bullish wheat (and don't know how/are unwilling to use other speculative tools), I would pull the trigger on any old crop pricing (grain delivered 2005/06 and priced new crop) relatively quickly. Lots of things that can happen on futures, basis and protein premiums (both good and bad) so I like the idea of having old crop priced/money deposited in the bank. I can live with an 1CWRS old crop price of $4.60/bu (Alberta), 3CWRS $3.65/bu and 1CPSR/W - $3.80/bu.
Was at a meeting yesterday with the CWB where discussions around cash pricing (even within the current CWB single desk mandate) went no where. So I am going straight to the masses. I note the daily price contract has been an effective tool and added value to farmers who have participated. Why not move to more of these type of programs (evne within the current mandate)? Why the artificial deadlines? Are the CWB issues around managing risk the pooling system the same as a farm managers? Whose interest should come first?