I suspect you have answered your own question in other threads.
Apologise for the curling (am back at it for the winter) but there are lots of times you position rocks to be use later on.
Basis levels (after you have included the late signup adjustment factor) have varied from $2 under for hard red spring wheat (mid Oct.) to $30 under (first release PRO/FPC). A farmer easily could have added on $15 to $20/tonne by paying attention to FPC basis. That is $700 on "B" train - maybe small change to a farmer but my experience is that most successful farmers find an extra $700 everywhere they can.
I note that if you haven't signed a flexpro contract, your only opportunity to hold an outside the pooling full payment alternative open is a basis contract. You have no choice. This is the reason close to 90 % of farmers who signed fpc in 2007/08 priced under $7/bu (see the CWB year end presentation).
The issue raised initially by dfarms11 was what is a good basis. You notice that I ducked this one because after 8 years of watching these programs, I don't know what a good CWB basis is - particularly on CWRS/CWHW/CWES. Maybe you can help him.
You might also comment on the flexpro. The flexpro to date has been the fixed price contract with the late payment adjustment factor - not a good thing is a falling market/positive adjustment and by any measure a poor replacement for the daily price contract which reflected US prices - the reason the program was the inability for the CWB to manage risk. If I were someone who signed one of these contracts (200,000 tonnes volume in total ), I would feel like I had been violated in a very personal way (others will have different terminology). What cash payment/relationship with futures or the PRO can farmers who signed a flexpro contract (perhaps on my advice? In a non competitive/beauracraticly established value, how can a farmer know if this is fair price?
Apologise for the curling (am back at it for the winter) but there are lots of times you position rocks to be use later on.
Basis levels (after you have included the late signup adjustment factor) have varied from $2 under for hard red spring wheat (mid Oct.) to $30 under (first release PRO/FPC). A farmer easily could have added on $15 to $20/tonne by paying attention to FPC basis. That is $700 on "B" train - maybe small change to a farmer but my experience is that most successful farmers find an extra $700 everywhere they can.
I note that if you haven't signed a flexpro contract, your only opportunity to hold an outside the pooling full payment alternative open is a basis contract. You have no choice. This is the reason close to 90 % of farmers who signed fpc in 2007/08 priced under $7/bu (see the CWB year end presentation).
The issue raised initially by dfarms11 was what is a good basis. You notice that I ducked this one because after 8 years of watching these programs, I don't know what a good CWB basis is - particularly on CWRS/CWHW/CWES. Maybe you can help him.
You might also comment on the flexpro. The flexpro to date has been the fixed price contract with the late payment adjustment factor - not a good thing is a falling market/positive adjustment and by any measure a poor replacement for the daily price contract which reflected US prices - the reason the program was the inability for the CWB to manage risk. If I were someone who signed one of these contracts (200,000 tonnes volume in total ), I would feel like I had been violated in a very personal way (others will have different terminology). What cash payment/relationship with futures or the PRO can farmers who signed a flexpro contract (perhaps on my advice? In a non competitive/beauracraticly established value, how can a farmer know if this is fair price?
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