Crusher, your futures-first basis contracts signed before Aug 1 are "safe" from the basis adjustment.
As for the ones that haven't been locked in yet, are you talking CWRS or CPSR. For CWRS, your guess is as good as mine on whether you should lock in the basis now before it gets worse. I'm with Charlie on this issue. The CWB's basis process is not very transparent so, for me, it's noteasy to make able to make any recommendations on future strategies. Given that, my gut reaction is to wait 'till the last minute unless it the basis improves by $4 ot $5 per tonne all of a sudden.
CPSR basis levels are better now than they were in late August but they're still no screaming h__l. Again my temptation is to wait and see.
However, I may change my mind a day or two before the next PRO on Oct 26.
For DPCs both basis and futures are important, but if futures rally, I'd be carefully watching northern U.S. interior cash prices to see if they follow along. They may not.
As for the ones that haven't been locked in yet, are you talking CWRS or CPSR. For CWRS, your guess is as good as mine on whether you should lock in the basis now before it gets worse. I'm with Charlie on this issue. The CWB's basis process is not very transparent so, for me, it's noteasy to make able to make any recommendations on future strategies. Given that, my gut reaction is to wait 'till the last minute unless it the basis improves by $4 ot $5 per tonne all of a sudden.
CPSR basis levels are better now than they were in late August but they're still no screaming h__l. Again my temptation is to wait and see.
However, I may change my mind a day or two before the next PRO on Oct 26.
For DPCs both basis and futures are important, but if futures rally, I'd be carefully watching northern U.S. interior cash prices to see if they follow along. They may not.
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