Where did the barley money get tucked?

[parsley]

Chaffmeister,

When the CWB went to the trade, on the barley awhile back, and they sold for $65.00/tonne more than they bought it from farmers, did you ever find out where they {accidentally} placed the money?

In Mamma's purse?

Or under the bed?

Contingency fund?

Liberal donation?

Parsley

[TOM4CWB]

Parsley,

They probably cross hedged (went short) to the MGE Spring wheat Mar 08 contract...

[parsley]

Taling about tucked...there was a post with comments from the Elevators' Association. Which thread is it?


Parsley

[chaffmeister]

There are 3 aberrant sources of money in the feed barley pool this crop year (07/08):

1. Sales by the trade were made last spring when they thought there was going to be an open market.

About 840,000 tonnes at $4.00/t paid to the CWB - not for anything in particular, just because.

$3.36 million

2. Sales made by the CWB through the trade (not through the pool). Rumour is that they made $65/tonne on ?? tonnes. I've heard it was about 100,000 tonnes but can't be confirmed.

That adds $6.5 million

3. Interest revenue. Last year (06/07) it was $2.3 million.

Add it all up and you get over $12 million.

To answer your question parsley - I don't know where all this will land. There's nothing that says it must go to the feed barley pool (none of it has anything to do with pooled sales).

My guess is that will end up in the contingency fund. Based on the market action this year and past experience, the contingency fund will need some help.

[chaffmeister]

Problem with finding out where it might hav gone is we have to wait till next year to decipher the CWB annual report. CharlieP does an excellent job of reading all the fine print and matching it to where it should go.
Although one can't say the F word, creative accounting is one of the CWB's greatest strengths.
Erik