CWB initials INCREASED!

[TOM4CWB]

Initial payments for 2006-07 crop year increased

Winnipeg -- The CWB today announced that 2006-07 initial payments for wheat, durum, feed and designated barley will increase effective November 2, 2006.

The increase in initial payments for wheat will be $11.05 to $17.50 per tonne, depending upon the grade and class. In the case of durum, the increase will be $17.50 to $25.50 per tonne. For feed barley in Pool A, the increase will be $10.50 per tonne, while the increase for designated barley will be $30.00 for both two-row and six-row varieties.

[charliep]

I note the spreads in the initial payments narrowed somewhat but not enough to take care of the distortions caused in the fixed price contracts. Can work the numbers but the idea is to deliver high quality/protein CWRS on the fixed price contracts and mid quality to the overall pool. For example, the decision to deliver 1 CWRS 14.5 protein versus 3CWRS can put as much as a $1000/B train in your pocket. You have to get your calculator out and work the numbers to decide what to deliver and when.

Just to highlight, you locked in your adjustment factor on the day you signed the CWB fpc. You lock in the grade spreads on the day you deliver on the fpc (and dpc for that matter).

[charliep]

Release from CWB today - interesting if not blunt.

The CWB will submit to the federal government this week a recommendation for further increases to 2006-07 initial payments for wheat, durum, feed and designated barley. Adjustment payments announced Friday were based on Aug. 31 recommendations from the CWB and do not reflect the current market outlook. They will be effective Nov. 2, with payments being deposited directly to farmers' banks accounts on Nov. 14 or mailed by cheque on Nov. 17.

[Incognito]

In 2005 , intitals were increased for the first time on Nov 28/05.

In 2004, on Feb. 15, 2005.

In 2003, on December 16, 2003.

In 2002 on Sept 17 and Nov 27.

[craig]

I find it interesting that the CWB implies that a lot has change in the marketplace since August 31. If they hadn't noticed the bull market has been upon us long before August 31. Whether intentional or not it reeks of trying to buys votes in the upcoming election.