Will also note that the federal government approved (and the CWB announced) adjustment payments. I will note that the payment adjustments are aggressive (under the conservative watch) versus levels the former government announced at a similar time in previous years. I note feed and malt barley initials sit at about 80 % of expected total payments. Wheat is about 70 %.
I also note the CWB has also tried to bring the protein and grade spreads somewhat into line with zero adjustment payment on high protein (15.5 % plus) to a $27/tonne increase on 3CWRS). You need to recalculate the relative advantage of delivering different CWRS grades and proteins against your fixed price contracts.
Anyone who has already delivered high protein wheat against a fixed price contract - you have additional money in your pocket. Those who haven't (either your decision or no space or not called) - your relative price has gone down. Anyone with lower grades (#2 and #3) or lower protein - the new initials are in your favor when applying a fixed price contract to deliveries. Again, you have to rework the numbers by comparing the PRO spread (Thursday announcement) to the initial payment one.
I also note the CWB has also tried to bring the protein and grade spreads somewhat into line with zero adjustment payment on high protein (15.5 % plus) to a $27/tonne increase on 3CWRS). You need to recalculate the relative advantage of delivering different CWRS grades and proteins against your fixed price contracts.
Anyone who has already delivered high protein wheat against a fixed price contract - you have additional money in your pocket. Those who haven't (either your decision or no space or not called) - your relative price has gone down. Anyone with lower grades (#2 and #3) or lower protein - the new initials are in your favor when applying a fixed price contract to deliveries. Again, you have to rework the numbers by comparing the PRO spread (Thursday announcement) to the initial payment one.
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