Do you want to know a secret?

[Hopperbin]

Lets clarify something. Are these hedging losses or hedging expenses?
The CWB has no business in hedging for profit or loss. So what the hell is this? A loss or an expense? We need full audit.

[Hopperbin]

One other thing. Can't tell me no one here marked one expense as something else listed expense even just for to make it easy or to hide something. What I cannot figure out is why the CWB has so much power as to not let a full audit.

[parsley]

Italics that thought hopper and then think it in bold. Pars

[Hopperbin]

huh, what?

[parsley]

"What I cannot figure out is why the CWB has so much power as to not let a full audit."

Put that thought in italics so it stands out when you look at it.

Make it dark so it stands out. Then when you anlayze it, think boldly and imaginatively.

You're onto something, I think .Pars

[parsley]

You're lucky you're not married to me, hop, it would be a little like living with someone who speaks Russian all the time. LOL

[mbratrud]

Seems like everything turns into a CWB debate on hear so I will wade in!

Was it Hedging "costs" or discresionary futures transactions? very big difference!

[TOM4CWB]

mbratrud,

It really appears that the CWB risk management dept. is saying they lost more money... every time they had to roll the long positions forward... because of the (adverse)inverse market(dropping).

Yet the CWB picks the months it wants to do the actual hedges... and charges growers the roll cost... to extend their own position... so I still don't see how PPO pricings cost/lost so much (it had to be pool positions then... by deduction)! Basis still had more revenues than these losses... so exactly how much did the CWB make on the basis... and if this revenue is created by PPO's... and the losses by the pools... why charge PPO contractors??

[Hopperbin]

Married to you may not be so bad, well at least you explain yourself parsley. meanwhile I dig holes for myself.

[mbratrud]

Tom4cwb

It is not at all surprising the CWB lost all this money on the PPO's. For people that are supposed to be so smart, and an asset for the Canadian Farmer they do not have clue.

In my view PPO pricing should be done during trading hours. Do you see any grain companies out there letting you lock in a futures price against your Basis after the Market closes. We all know the Market drops a lot faster than it goes up. How many mornings would the traders at the CWB been facing huge futures losses because the PPO's that came in from the day before had to be hedged after 2 or 3 days of limit down losses. It doesnt take long for the numbers to baloon. This is just bad policy and if they were a private company competing for the Grain they would be broke!

I would like to hear CWB Management explain the rational around a hedge risk strategy with most of the "risk" transactions being done when the futures market is closed.