CWB vs DCA

[wd9]

Any thoughts on the advantage of using the
CWB pooling versus doing your own Dollar
Cost Averaging by selling one sixth of
your crop every month for six months?

[LEP]

Considering you don't know when you commit your grain to the pool what they
expect for a price, I would say they don't set expectations very high.

I was never a fan of selling one sixth or one twelfth to get an average. Manage
your sales based on fundamental and technical info and you should beat the pool
everytime.

And you can mange your cashflow better.

[bucket]

LEP

Just by selling one sixth or one twelvth at a time you will do better than the cwb because more than likely, you know your final price and your average as you go. You can also sell two twelvths in a month if the price is at your liking.

The cwb never guaranteed anything. The federal government guaranteed the initial and the cwb's PROs meant nothing.

[TOM4CWB]

WD9,

I too have been using the CWB pool as a residual last resort sales tool... as since 2000 we have been allowed to 'DCA' to some extent... partially outside CWB pools. It will be truly 'interesting' to see if CWB prices reflect the cash market... or continue to favour pooling customers.

We need to see. I have no indication where they are even headed yet.

[wd9]

That certainly is the challenge. It will
be quite interesting, now that everything
is wide open, how the CWB will perform in
a basically cash offering market.

Somewhere along the line though, you gotta
pay for all the overhead to keep the cwb
running and getting stroked by grain
transportation.

[TOM4CWB]

WD9,

Being the lowest cost service provider... of the highest quality product... will be the needed goal of the CWB.

There are tons of alternate transport and handlers... the incremental increased business is always the least cost. It will be the CWB's challenge to capitalise on this handling model.

[Hopperbin]

That deal they struck with Cargil does that mean only Cargill will handle CWB grains?