CWB PROs and Deadlines

[charliep]

Any thoughts ahead of Thursdays PRO? Fixed price 1CWRS 13.5 is $305/tonne versus a PRO of $300. Futures are actually a little lower but the change over the past month is a stronger CWB basis (currently $30). My suspicion is up $5 to $10. Others.

Also Friday is the deadline on the "A" series. Note the conversation on durum in other threads. Thoughts for other grains? Grainflo?

[bucket]

What if the pro goes up? What keeps the cwb from lowering them later after they pay a shitload of dummurrage?

Remember the feb 09 durum PRO that was a premium to spring wheat? Ended up they have not paid a penny more on durum than the initial payment.

Also factor in the acceptance levels. If the pro was set at 10 bucks a bushel and they only move 50 percent of the crop - you only net 5 bucks anyway.

The cwb never factors this into their so called premiums. In the states there is always the opportunity to move 100 percent of the crop.

[charliep]

Suspect the CWB will take 100 % of the "A" series for all crops. Durum could be a quesion. Same comment on feed wheat but don't expect a major signup based on current 70 cent/bu initials which could be up to $2.50/bu with a $70 adjustment payment.

[crusher]

From CWB website: Series A deadline Monday midnight. Also a producer can use previous deliveries against new FPC, interesting. Deadline for FPC January 2011.

[charliep]

Thanks for correcting. Is Monday. Also highlighting the nuanaces/changes in the current crop year. The devil is always in the detail.

[charliep]

Hadn't realised the opportunity to price old deliveries under an fpc. Every kernel of wheat delivered to the CWB prior to January 31 would be priced under fixed contract. Would have a pretty good measure of bins and have my after January 31 inventory covered with basis contracts or fpc. Wheat delivered equals money in the bank. No waiting final payments.