CWB delivery calls

[TOM4CWB]

Charlie;

I see at http://www.cwb.ca/en/movement/contract_calls/2002-03/041603.jsp

THe CWB has called almost everything...

Why wait till the middle of road bans and spring seeding?

[Ration-Al]

Because that's when the St. Lawrence movements begin. You can't fight mother nature.

[TOM4CWB]

Ration-al;

The premium markets are all West... very little grain from western Alberta goes east... infact to the extent, that if I want to send my wheat to Ontario... the CWB charges an extra $12/t on my buyback ... with me still responsible for the total transport cost to Ontario from Edmonton, of the 1CWRS wheat.

I don't buy this...

Our communities in the drought area had the capacity to easily handle all the wheat we grew last October... when the prices were the highest!

SO the CWB forces me to hold my wheat... and sell it into the lowest priced market of the whole year... when there was no good reason to do this in the first place!

THen the CWB asks me to move this wheat... on roads that will have the highest damage possibility of the whole year... and cost my local infrastructure the most possible damage.

[JACKFLASH]

TOM4CWB

Does the CWB go out on the futures market and hedge grain? When they make a grain sale in say july 2002. Hedge your grain sale and lift the hedge when delievery is made. I would like your comment.

Also I agree with you why are we all getting hammered to move grain now when we had all winter to move it.

[TOM4CWB]

Jackflash;

The CWB will not release what they do on futures risk management...

It is very interesting that the CWB in the 2001-02 PPO wheat contract program, both made a profit on hedges farmers contracts created... plus sold this grain for over $25/t combined profit more than selling straight through the pool.

If we farmers had made poor decisions, then the futures hedge positions should have been a loss... to the PPO programs.

PLUS... the CWB tells me they did not hold specific futures hedges accountable to PPO contracts held specifically by CWB hedged priced grain...

THis could easily mean the futures hedged position could have accrued yet more favourable returns to the PPO contingency fund... had they been held until delivery of all PPO contracted tonnes were all called and recieved by the CWB.

Now the EPO contracts will be eating away the contingency fund... because I would be VERY surprised if the CWB risk managers did anything different with the EPO contract program... compared to the rest of the risk management for the 2002-03 wheat pool itself...

The drop in the 02-03 PRO's prove the CWB did not do any constructive risk management... to mitigate the risk of falling prices...

Has this helped?

[JACKFLASH]

TOM4CWB

Yes sir this has helped!!! If the
CWB hedged the PPO contracts there was a good sized profit made. Yet the CWB said the 2002 PPO program was a flop. Farmers made poor decsions in locking their basis and price and realized less money than going with the pooled program.

The CWB hedged the Minniapolis wheat correctly,but by the time farmers were offered inflated basis from the CWB we were put at a disadvantage.

On the EPO contract. It all should be hedged to manage price risk. We as individuals operate this way all the time. The CWB has all these so called market analysts. Touted as the best in the world,can't they manage a futures account.