Tom: It would seem to me that as important as anything is the "Intelligent Collective" or collective intelligence of all the players, and in this case it would be the day in and day out marketing of product against a posted price. Now often this phrase would be in the Oxymoron column, but let's assume it has some value, and herald it's advantages. Just as Canola is marketed everyday and right or wrong it also forms an average for the year on behalf of sellers, companies, the country (hence the economy) it has a way of managing risk. Not all knowing or all illinformed, just day in, day out. This to me is the most important goal for the CWB to pursue. I need this. My neighbours need this. My province and country need this. To leave it up to a single desk marketing team appears to attract folly. For them to market in this style on my behalf is folly. I can't even understand why they would want the thankless job, they can't win. We need to separate marketing by the producer and marketing of the physical grain. If we sell today against the posted price, every day, the board can either zero it off against the market by an equivalent futures trade, or if they have a premium price, lock that in against this exposed tonnage. Then both of our risk is minimized, and the premium should be permanent and exposed at year end in the final payments. I in no way want to get involved in the physical grain, excepting to deliver it to one of the boards agents. There still will be binding delivery contracts under this proposal. So it is not like the board will have to go begging for grain. That part should not change. The single desk has ample value to all of us if pursued in this regard.
Shortening the pools into contracted quarters may be necessary, to force orderly movement. But that is just a typical basis as now reflected in Canola or other open markets. In my opinion.
Shortening the pools into contracted quarters may be necessary, to force orderly movement. But that is just a typical basis as now reflected in Canola or other open markets. In my opinion.
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