High Protien CWRS Storage Program

[RickyBobby]

1CWRS 15% what to do with pricing ?
Stay in 09/10 Pool or 10/11 Pool?
Take 10/11 Fixed price contract?
Thoughts?

[TOM4CWB]

You could have had the same price as the folks in Ontario (equivalent 3CWRS 12px) on July 23/10... with a $50/t port basis ( or...$5.85/bu)... for your 1CWRS 15px!

IN The current spread in CWB initial prices (which PPO contracts are based) the CWB has graced us with... is $1.10/bu discount between #3CWRS 12px and #1CWRS 15px (FPC 10/11).

If there truly is a shortage of high quality wheat... this spread will likely be much wider... it was up to $5/bu premium last spring!

Too bad the CWB wouldn't share that tiny little bonus with you!

[disker]

Hi Ricky,
I am trying to figure the same thing out. Too nervous to just stick it in next years pool as have to wait for money and initial is crappy. 2 options I came up with are 09/10 pool and using Pro's and current spread from #1-13.5 to #1-15.5 I come up with a price of sbout 285/tonne in store plus storage premium. Option 2 would be to sell it on a Fixed Price or Flexpro but I figured I would need about 260/tonne because the protein spread is less for 10/11. I guess there is a chance the spread could widen but it did not until the initals increased last year in March so if I have to deliver before the CWB increases the protein spread I would just get the $24/tonne premium. I talked to the board yesterday to make sure I am going to get the 09/10 protein spread if I price against the 09/10 pool and the answer was a little shaky but I believe that is the way.
Any thoughts or your calculations
Curt

[RickyBobby]

Disker ,
Sounds like you are mulling over same issue , thanks for your input. My math may be wrong:
1CWRS 15.0 $274/t or $7.46 09/10 Pro
1CWRS 13.5 $236/t or $6.42 09/20 Pro
Fixed price 10/11
1CWRS 13.5 $251.12/t or $6.83
1CWRS 15.0 ???
Current spread on 10/11 initials is $13.20/t between 13.5 and 15.0 so should make PRO on 15.0 $247/t a spread of $22/t
Makes 15.0 on todays Fixed price worth $273.12/t or $7.44
So if my numbers are right it looks like a push , so staying in 09/10 pool is the choice for me .