what does this mean?

[TOM4CWB]

Folks,

THis means, with the CWB Act Regulations now on the books for August 1 07;

Use the tools avaliable.

The WCE has a functioning futures, and options risk management tools.

Very profitable prices can be hedged. Work with buyers to mitigate risk on the hedge for weather risk. This can be done for a better price, with less risk than the CWB has ever offered before. WCE Feed Wheat is at historic highs for fall futures... a little patience should lock up $4.50/bu.

Now we must concentrate on getting ALL of our buyers to help mitigate our production risk... they can... if we truly identify the risks... and are willing to pay our fair share of the cost to manage this part of marketing risk!

[poorboy]

TOM4CWB,

I think that it is questionable to say that Winnipeg has a funtioning futures and options market on barley. The options component is so thin as to be almost unuseable. The feedlot that I price with has to have a couple of days lead time to try and get a futures contract. It seems that there is not enough liquidity.

Hopefully, with the CWB out of barley, that more people will use the barley futures and make it a great pricing tool.

For a lot of farmers the tough part to grasp, will be that there is a cost for using price protection tools. Once farmers get used to that, it will only get better. I am amazed at how many farmers have no idea of what the canola basis is, just that they got $X/bushel as a quote.

[nakodo]

It is the same with every crop, local elevator provides the "best" = highest price and yet claws it back plus more in the basis...net loss but bragging rights in the coffee shop.

[kamichel]

Well I actually met a guy this spring that figured he locked in 6 dollar HRSW. When I asked if it was before or after freight, handling and elevation, he was not sure.

[kamichel]

After the grading number 2 and 6 percent midge damage he would have been better off delivering for 4 dollars to a feed mill.