CWB Target pricing

[dnach]

Tom, I would imagine you will have an answer for me: Curently the CWB is offering a stike price option for HRSW. I talked to the CWB about this and it was explained too simple, what are the draw backs? I can not think that I could phone a stike price on 'x' tonnage without having to jump through hoops backwards just to capitalize on it.

[TOM4CWB]

Dnach;

Target prices are good... especially if you know you have a specific quality of grain... and are happy with the basis.

In the CWB's PPO's we won't know the quality till after we must sign up...

And we know for sure... on almost every year... the CWB basis really stinks... the pool is much much better at returning a reasonable basis...

My suggestion... buy a US put option.... It would offer a much better reward... especially if you deliver into the pool and keep the extra basis the CWB steals from PPO's and puts in the Pooling accounts.

I say this after watching year after year... watching the CWB put mega dollars in the pooling account from my hedges... and not sharing it with me!

[dnach]

Thank's for the insite, Tom.