CWB 07-08 DPC FULL

[TOM4CWB]

Charlie,

I called down on my FPC... guess what I got on the recording?

THis face in no way discribes my frustration.

These people are completely out of control.

[charliep]

Not surprising. Has been a licence to print money. Also the only way to cash price old crop. Will let CWB supporters explain the logic behind the 650,000 tonnes. Also the risk this program poses to both pooling years (based on the current CWB mandate to manage all risk relative to the pool returns versus simply cash pricing).

Will be interesting to see the CWB communication strategy.

[TOM4CWB]

Charlie,

This was the sign up period... a quote take from the CWB web site on the 07-08 DPC page:

"Sign up period
Sign-up for the program begins at 9:00 a.m. CST on June 18, 2007 until July 20, 2007 and is on a first come, first served basis. When the 650 000 tonne limit is reached, the sign-up period will be terminated without prior notice.

During the sign up period, producers indicate the class of wheat and tonnage amount they wish to commit to the program and agree to price their contracts during the pricing period of August 1, 2007 until July 31, 2008. The minimum sign up amount is 20 tonnes, and there is a maximum per farm limit of 5 000 tonnes. Tonnage commitments can be decreased before July 31, 2007 for a $15 per transaction administration fee."

Then this on the link from the CWB Home page:

"The tonnage sign-up period for the Daily Price Contract (DPC) is closed as of 10:30 a.m. CT, Monday, June 18, 2007.

The CWB will not accept any further sign-up commitments for this program.

Producers interested in discussing assignment opportunities may call the CWB toll-free at 1-800-275-4292."


How did the CWB sign up 650,000t in less than an hour and a half with a maximum signup of 5000t?

My bet is the average signup is less than 500t. How do you get 1250 plus growers signed up in less than an hour and a half?

THis something is very fisssshy.

[just_wondering]

Tom I got in buy getting my Cargill rep to Call I had everything lined up then they called in with all their customers orders
Moose Jaw might have had 15,000 tones or 100,000 tonnes but they did it in one call my rep said they even had some customers at the bottom of the list that did not get in. cut off mid call the sign up was over. He said they had to call for half an hour before even they got through.

[charliep]

The CWB says it is willing to change to meet market demand. If this is not a direct signal of what farmers want, then I don't know what is. Phone your CWB director, farm business representive, 1 800 ASK 4CWB, etc. and ask for a higher sign up volume.

Strangely the DPC signup occurred on the same day as the barley press release. What would the opening story have been on the Western Producer if the press conference was tomorrow (June 19)?

Just as a note. In making these comments, I feel herder rustling up sheep for the wolves. Who knows what the CWB will do. No consistency in policy.

[btjadenlepp]

I'm nervous about this program. with all the interest and all the premiums in previous years, they will find a way to make it unprofitable in 07/08. like charlie said, this dpc has been a license to print money which we all know is not the cwb's way.

[btjadenlepp]

that said, we got all our clients' forms in. our group's not big like cargill's but we had a couple of advisors doing 10,000 tonnes plus at a time on behalf of their clients this morning.

i'd suggest those who didn't get in to get on the assignment list. we wanted to make sure we will have the option of using the dpc this year to price our client's crops, but like i said i'm not as optimistic about the potential for the program this year as in the past. i also think the domestic market has some juice yet based on new-crop barley exports and current bids, the u.s. wheat market rally, and wow did you guys see today's condition ratings plummet in corn? what i mean is, if the fpc is still at a $30/t premium to the pro at the end of july why would i take the gamble on the totally unknown dpc instead of booking $5/bu ?

point is we've got 20% committed to the program right now, but also a list of reasons to cancel those (it only costs $15/contract) before the end of july depending on what the markets do in the next few weeks.

of course, those will go to any new farmlink clients first...

[SASKFARMER3]

Got in for 1000 tons but used Cargill for the run. Had problem with CWB and my Pin number had to mail me a new one by snail mail but I still qualified.
what a system.
Oh yea just back from good old USA wet in ND and South but frost in Oklahoma and Kansas.
Watch wheat have a fun dance next week when Stats Can said oh by the way no one grew any wheat this year.

[kamichel]

I kinda figured that the 5000 limit per farm is just not right. So a bunch of the larger farms got in on the program leaving most farmers out. Just great. I call for the Max. to be reduced to 200 ton and let some other farmers in on the program.
Does this not make sense? So what , you guys cannot price till Aug. 1 anyway. It should be done over. This is just not right. Where is the CWB's claim to equality. Anyone want to haul a load of manure into Winnipeg??

[frustrated1]

Just curious. How many were able to get a contract on their own? The only one I've talked to in this area getting a contract was through Cargill as well. That name seems to be coming up frequently here.

[FarmRanger]

I faxed mine in, but was phoned and told I was on a waiting list because it had filled up by 10:30 am local time...I think that was a couple of hours before my fax went in with the time zone differential.

[parsley]

Is Cargill supporting the law suit launched against the Fed Gov't?

Parsley

[northfarmer]

our local carill got none of their customers, myself included, in on the DPC sign up, we are all wait listed, th eone fmr alone probably had 30 to 40 thousand tonne to sign up i would guess....needelss to say they were upset and so were the customers....they sat on hold for a long time.....it would have not helped if every one of the farmers did the same....I am with lepp on this, makes me nervous on what they plan to do with the program given its success and clear indicatiopn of farmers desires to prices in a daily cash market and out of the pool, they already took another $5 off the top to unseeten the deal