Again, this thread gets to the heart of having a single-desk - so you can have the ability to extract more from the marketplace. As tom4cwb points out, everybody has different needs, and somebody would sell try to sell to the higher value markets at prices lower than the CWB.
Could there have been a more powerful message to the marketplace than having the CWB withdraw from the market this fall? Was that message there for canola? If it were, there would be cries of price fixing and collusion.
This debate also highlights that there is no such thing as a dual market. Once there is no single-desk, it is gone and it is an open market, so this should be called what it is - an open market.
One of the things in a year like this that is extremely valuable information is the available supply. SO you may think that you are sending a message to the market by not signing a Series A, but the biggest result will be that you will be diminshing the amount of information available to help the CWB develop a strategy geared to generate the most amount of $$ out of the grain available. The delivery contract stats numbers are not provided to the trade or to buyers for that very reason.
Just as an example - having a feel for where the #1 product is located will be important to coordinate transportation logistics this year. This will be important to try to get as much of this product into position as possible without losing it all to blending. The best strategy will be to maximize the high quality milling wheat sales, and to do that it will be important to know where it is located.
For the CWB to do the best job for you, it will need this type of information. The more accurate the info, the better the results will be.
Tom
Could there have been a more powerful message to the marketplace than having the CWB withdraw from the market this fall? Was that message there for canola? If it were, there would be cries of price fixing and collusion.
This debate also highlights that there is no such thing as a dual market. Once there is no single-desk, it is gone and it is an open market, so this should be called what it is - an open market.
One of the things in a year like this that is extremely valuable information is the available supply. SO you may think that you are sending a message to the market by not signing a Series A, but the biggest result will be that you will be diminshing the amount of information available to help the CWB develop a strategy geared to generate the most amount of $$ out of the grain available. The delivery contract stats numbers are not provided to the trade or to buyers for that very reason.
Just as an example - having a feel for where the #1 product is located will be important to coordinate transportation logistics this year. This will be important to try to get as much of this product into position as possible without losing it all to blending. The best strategy will be to maximize the high quality milling wheat sales, and to do that it will be important to know where it is located.
For the CWB to do the best job for you, it will need this type of information. The more accurate the info, the better the results will be.
Tom
Comment