Old crop 3CWRS and Dollar values

[craig]

Going through some of my internet e-mails this morning an it brought up a couple of interesting questions. In the fall with delivery opportunities poor it became obvious that the priority of the board was to clean out elevators of old crop 3CWRS. It was my understanding that it was blended with new crop CPS and sold to India.So the question. Since the market had moved higher since last year are there additional funds generated or was the sale done dirt cheap? The other question relates to Canadian dollar values. The CWB is quick to point out the consequence when our dollar goes up but not sure when it goes the other way. If a sale is made in November at a 90 cent Dollar and payment and delivery is made in April 2007 at an 85 cent dollar do we not accrue more value into the CWB?

[Vader]

Foreign exchange values are hedged at the time of the sale.

[craig]

Vader there are numerous currency tranactions in a grain sale. Conversion from country to U.S. dollar. From U.S. Dollar to Canadian Dollar and then finally from CWB to farmer. (change in time value) While I understand the need to cover risk I'm not sure it covers all that is involved in the process of getting the dollar to you the producer in the end.

[kamichel]

One thing I have learned from my marketting class is that every time in the end if not after one transaction then after say 100 transactions on futures ,commodities, dollars, etc. The farmer best off is the one that can sell his product at his determined time and not cover himself if case of market change. Through the pretend futures trading that we did in class anyways that is what I have concluded. As there are costs involved in futures trading and the fact that the market has a 50 percent chance of going up and a 50 percent chance of going down. And everything that can affect the market has already affected it. The cost of the trade made the trader the loser in the long run. The board in my opinion has at the moment no real reason to invest in currency exchange. The end user possibly, but not the Board. The farmer possibly if he is worried that a dollar value increase or decrease will harm him. Futures trading costs may be a part of business for some. So in my opionion CWB has no place in Futures trading, me not, other maybe, future CWB trading in open market likely should. OK I am waiting for the pile up.