Kamichel: <i>Why have a barley price pool? Why not just have one fixed price that changes every ten minutes of the day. That is what I would like to see. </i>
What you just described fits with my idea of an unpriced pool. One that will change in price every time the futures price changes.
Let’s remember that there are some out there that may still want a pooled price to manage their risk. But the problem with a voluntary pool (according to the CWB) is that it can’t be competitive. If the CWB offered a pooled basis, this would solve that problem.
If the CWB is providing any benefit, it would show up in a basis – not futures.
Pricing performance would be your own – at the market – through pricing orders like you might do with canola. Responsive to appropriate price signals. And would allow the CWB to be competitive with other buyers.
The CWB could offer 5 pools – one for each futures contract:
Aug-Sept delivery basis the Oct
Oct-Nov delivery basis the Dec
Dec-Jan-Feb delivery basis the Mar
Mar-Apr delivery basis the May
May-Jun-July delivery basis the July
The CWB says that without the single desk, they can’t offer anything the grain companies can’t offer. How about risk management through pooling?
What you just described fits with my idea of an unpriced pool. One that will change in price every time the futures price changes.
Let’s remember that there are some out there that may still want a pooled price to manage their risk. But the problem with a voluntary pool (according to the CWB) is that it can’t be competitive. If the CWB offered a pooled basis, this would solve that problem.
If the CWB is providing any benefit, it would show up in a basis – not futures.
Pricing performance would be your own – at the market – through pricing orders like you might do with canola. Responsive to appropriate price signals. And would allow the CWB to be competitive with other buyers.
The CWB could offer 5 pools – one for each futures contract:
Aug-Sept delivery basis the Oct
Oct-Nov delivery basis the Dec
Dec-Jan-Feb delivery basis the Mar
Mar-Apr delivery basis the May
May-Jun-July delivery basis the July
The CWB says that without the single desk, they can’t offer anything the grain companies can’t offer. How about risk management through pooling?
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