Single Desk costing FPC users $22/tonne storage

[bgmb]

Here's what the basis should be worked back to southern Manitoba using North Dakota cash prices as a benchmark for new crop values.

New crop cash price in ND
4.90/bu USD
5.70/bu CDN

CWB FPC Price
231/tonne in store vancouver
6/tonne basis
237/tonne in store vancouver
187/tonne on farm manitoba
or $5.10/bu

5.70-5.10=$.60/bu

This is a good example of the "benefits" we are recieving from the single desk.
- we are storing our grain for ??time??
- getting 60 cents per bu lower than our neighbors to the south.

The basis is $22/tonne undervalued!
Not including our extra storage costs!

[bgmb]

Should read:

Single Desk costing FPC users $22/tonne PLUS storage.

[kamichel]

Fixed price contract Feb. 26 is 6.43 per bushel minus average manitoba deductions of 1.49 comes out to 4.94 per bushel. My place deductions of 1.70 per bushel Humboldt Sask. I would get 4.73. BGMD you must have better frieght than most in manitoba. Still over 10 percent better than current 06 07 pro.

[kamichel]

BGMB I believe you are not supposed to add the basis 5.72/ton onto the fixed price. It is already added on. That is where our calculations differ.

[bgmb]

kamichel

I took the futures and added the basis, then subtracted about $50/tonne for freight/handling.

I cut the freight back a bit from the average because i want to compare at the boarder and I don't think they get much better than $50/tonne, I was just trying compare the same geographic area.