Today is the deadline for a number of CWB contracts.
"A" series delviery contract. Recommendation - would contract all high quality CWRS/CWES/SWS and durum wheat on the "A" series. Why wait unless you are a real bull/have lots of money and can afford to store? CPS - Except for stuff contracted under the different producer pricing options, I would be tempted to hold off till the "B" series - play the domestic market off against the CWB for best deal.
New fixed price/basis contracts - Given the current basis levels, I suspect the boat has already left the harbor (don't sign up any more). If you need to improve cashflow/lock in price, use the EPO. The only place I might suck up and eat the current basis is if I had extremely high protein 1/2 CWRS that can be delivered into the elevator system before the new year - the objective is to lock in the protein spread in initial payments. You have to warm up a pencil and calculator to make this decision.
Locked in the futures previously/are waiting to lock in basis on an FPC. Ouch. You will have the basis locked in (adjusted by the level on the day you signed the contract) today. The lesson to be learned is never sorting out the details of a contract to the last day.
"A" series delviery contract. Recommendation - would contract all high quality CWRS/CWES/SWS and durum wheat on the "A" series. Why wait unless you are a real bull/have lots of money and can afford to store? CPS - Except for stuff contracted under the different producer pricing options, I would be tempted to hold off till the "B" series - play the domestic market off against the CWB for best deal.
New fixed price/basis contracts - Given the current basis levels, I suspect the boat has already left the harbor (don't sign up any more). If you need to improve cashflow/lock in price, use the EPO. The only place I might suck up and eat the current basis is if I had extremely high protein 1/2 CWRS that can be delivered into the elevator system before the new year - the objective is to lock in the protein spread in initial payments. You have to warm up a pencil and calculator to make this decision.
Locked in the futures previously/are waiting to lock in basis on an FPC. Ouch. You will have the basis locked in (adjusted by the level on the day you signed the contract) today. The lesson to be learned is never sorting out the details of a contract to the last day.