CWB lost $467M on Hedging Activity

[Hopperbin]

All I can say is she ain't over till its over. Right now I have a serious headache. After reading notes its still not clear where these numbers come from. This is an unaudited I take it. We need better explanations.

[Hopperbin]

Tom you said "The CWB cash sells barley... and has no problem... the Organic wheat sold for $846/t... lost a wopping $.50/t with no hedging or risk management ability at all. "

I have been wondering about that.

[TOM4CWB]

Hopperbin;

Get a load of page 80!

"The net foreign-exchange losses included in operations for the year ended July 31, 2008 are $49,594 (2007 – $5,885 gain). Page 80

So... Hopper the CWB is near 'perfect' in its ability to manage foreign-exchange risk... while dealing with billions upon billions of $$$ of activity.

Now comes the kicker...


"The Corporation has elected to discontinue hedge
accounting and therefore has not adopted Section 3865 – Hedges.
Financial assets classified as available-for-sale will be accounted for at fair value
with unrealized gains and losses due to changes in fair value being reported in a new category called earnings for future allocation.

The Corporation’s grain sales and purchase contracts are derivatives because their prices are based on an index. The Corporation’s decision is
to treat all grain sales and purchase contracts as derivatives.

All outstanding grain sales and purchase contracts will be fair-valued with realized
and unrealized gains and losses due to changes in fair value reported in income.
We do not apply hedge accounting to our derivatives."

Good job on a great cover up... so CWB contingency fund and botched risk management will not be disclosed.

If the CWB had nothing to hide... it would fully account for everthing.

This is a farce.

What about hedges for 'customers'?

What about hedges done to string out or shorten the pool pricing line... where are they accounted for?

So... how much did the CWB actually blow out the window in Jan/Feb/Mar of 2008?

Unless a special audit is done... no one except CWB managers who took home big fat bonuses, will ever know!

A Wall Street special... with a Canadian Beaver nailed to that wall... thats me!!!

[TOM4CWB]

Charlie,

Does this make any sense to you?

"28. Comparative figures [assumption that adding 000 to all numbers quoted]

Certain of the prior year’s figures have been reclassified to conform to the current year’s presentation. The July 31, 2007 Combined Statement
of Operations includes $4,527,378 of combined pool earnings plus $92 from cash trading operations, less $1,066,304 in payments to
producers and other expense under the PPO programs which were previously shown only in the statement of PPO program operations but are
now reflected in Grain Purchases, resulting in net earnings of $3,461,166. Last year, the statement of operations for each pool and program
was presented separately. The pool statements were the only statements that also had a combined statement. This year all statements of
operation from all pools and programs are combined resulting in the reclassifications noted above."

[parsley]

Auditors ghave let us down.

Fancy auditing

The auditors should be brought to task for custom-designing books.

Auditors should be doing their job and laying out a FACTUAL, NON-SPIN, CONSISTENT REPORT. A report that is not meant to hide information or put information in a different light.

pars