Fixed price or basis contracts

[TOM4CWB]

Charlie;

The last PRO in Feb suggests the CWB has priced the rest of the 03-04 crop... as the PRO did not rise.

WHat does this mean?

We told the CWB in Dec. 03 at the C&C mtg in NISKU that their projections for a declining wheat market were out to lunch... which were exactly correct.

The 04-05 PRO confirms that the CWB refuses to market our grain in a positive manner... they indicate a give away later in the year, with a $201/t PRO and a cash price of $222.

A cash price is the only way to resolve this issue, and the CWB knows this... but refuses to implement it.

Contracts for those who cash price VS pool can protect the pool... the CWB's excuse does not hold water.

Padding the Pools with cash pricing basis is the only reason the CWB refuses to offer a fair cash price to ...timm... today.

Deception and denial are the practice at the CWB, which unfortunately spell the ultimate end of the CWB in the longer term.

[timm]

i am contracted under A series,90% epo on last 50%.(2000 mt contract ,first 50% delivered).if i did a basis contract & didnt fulfill what are the penalties.as i understand you just pay the change in basis if it moves lower.also are there epo penalties if not fulfilled.last year i opted into pool instead of filling basis and was charged 58$ mt penalty on a basis contract that cost cwb nothing .now im told by local elevator rules have changed on unfilled basis penalties( ex 14-17 ,3$ penalty).last week i hauled canola into pioneer grain 9.15 net bu. spot no contract no headaches.wheat could be the same and its obvious it would be more efficient.