New Crop KBOT/MGE Wheat

[TOM4CWB]

Charlie;

I see KBOT Dec 04@$3.89 WHILE
MGE Dec 04@$3.84 along with CBOT.

WHAT about hedgeing this spread for CPS CWRW 04 production?

[Ration-Al]

What if you sold KBOT Dec 04@$3.89 with an ofsetting purchase of
MGE Dec 04@$3.84. Since this price spread is inverted chances are they will return to normal spreads and you could unwind these positions for a profit.

Here is a short discussion of the subject I found by searching "kansas minneapolis wheat spread". Still looking for the charts.

[TOM4CWB]

Ration-Al;

That would be the hedge all right.

Historically KCBT can go to $.30/bu over MGE, so there is still some risk...

We sure could use a PPO for the 04 CPS CWRW crop.

Just like last year (02) in OCT NOV for 03 crop... a pretty penny could have been hedged IF the CWB had been working like the OWPMB was, there farmers had this opportunity.

There is so much more the CWB could do... it is about time they start doing it.

Timing is more important in making sales, the CWB pushing for the last few cents many times costs us big time in the long run... CWB sales people can't see the forest for the trees!

[Ration-Al]

I thought the PPO's were available for all classes of wheat.

What about some kind of contract where you could lock in the FX through the CWB for some tonnage of grain and price the grain later. Somewhat like a basis contract.