Undistributed earning/transfered to contingency fund

[parsley]

Okay, let's run our imaginations with complete abandon this morning:

Could 'the cash/cache' be on loan, for example, to a political party with no money and lots of debt, just for awhile so's farmers don't notice, or how about this one.....maybe backing an AE's financial fiasco for a spell?

Or what about this one...a rogue employee like the one in the bank in England, playing with derivitives?

My my, my mind is fertile this morning. Pars

[chaffmeister]

Let's go back to Charlie's rant about barley. In particular, the $20 million made in cash trading.

Of the 1.2 mmt of barley sold in the CWB’s “cash trading mechanism” about 850,000 tonnes were what the trade did without the CWB.

The CWB snagged $4.00/t from the trade to allow them to execute once the open market was closed.

That’s about $3.4 million out of the $20 million the CWB made on barley in that account.

That leaves about $16 million on the 342,645 tonnes the CWB sold.

It's easy math - the CWB made about $48/tonne on their 342,645 tonnes of cash trades.

And this went straight into the Contingency Fund to take the sting out of the losses from incompetence in hedging.

All you anti-multinational haters - in a voluntary market, there's no way any one firm could take that much out of the market just trading.

How's it feel getting "taken" by your Royal Canadian Wheat Board?

[Burbert]

You's guys, including gov't agent Charlie, should refer the matter to your accountants. They could tell ya, whats goin on. Better yet refer to yer brokers, cause after all, theys the guys that want to rid us a the board. I'm sure they'll giv yas an impartial answer to you worried farmers! Ben taken advantage of lately, has the open market failed ya, never fear, once you's is truly free, you'll either all be rich or broke!!!

[TOM4CWB]

Burbert,

For the CWB 07-08 Annual Report to back up statements that the 'single desk' gains us a premium...

when Cenex (US Northern cooperative) makes a billion dollars... with 60% of its grain handle for exports (in direct competition with the CWB)... while providing growers premiums much more than the CWB could attain... (by CWB's own admission... and shutting down of DPC program) while US growers are using a much more costly US grain handling system...

The CWB CLAIMS defy all logic. The CWB DISCOUNT prices our grain. That is the only conclusion a reasonable person would find. C. D. Howe Institute study backs this up.

I don't want you to encourage the CWB to speculate on futures exchanges... using hedges... to lose my families money.


Please explain where my logic is faulty... Burbert.

Do you truly believe we would all complain if the CWB had made a Billion dollars on hedges... and lowered the cost of doing PPO contracts by the extra $60/t they charged us... while at the same time providing much higher returns for those using the pools in 2007/08?

If this had been the situation instead of losses... it would have been the first time in history... the CWB performed up to its claims.

[chaffmeister]

Tom - you make a good point.

Should the CWB speculate?

Since you can do that yourself, I think the answer is pretty clear.

The CWB almost got it right when it decided to set a Pricing Pace for wheat - it should provide average futures pricing over the crop year for those that want it and those that don't should be free to price at their own discretion.

And forget about the PPOs - what I'm suggesting could be done within the pool accounts.