C Series CWB Contracts

[TOM4CWB]

Charlie,

I was interested in the press realeases the CWB had on the 4mmt movement and PRO for 06-07... and lack of $ impact on the PRO.

My bet is VERY little acceptance of the C Series 06-07 contracted grain!

What do others think?

[charliep]

The export estimates are not surprising at least from my side. Exports (all wheat including durum) to May 20 are about 14.5 MMT (CGC). That puts the export forecast at 18.5 MMT. Depending on what happens with domestic feed wheat use (know is big), carryovers are likely to be around 7.5 MMT - down just over 2MMT from July 31, 2006 but in line with historical averages.

Would expect 100 % acceptance on most wheat classes, grades and proteins with exception of high quality/protein CWRS and CWAD (likely to carry some into 2007/08). Won't pretend I know what the call will be on the latter.