There is definitely something wrong with our marketing board, the Canadian Wheat board. On Aug. 4, the Kansas Hard Red Winter futures price was $7.59 per bushel and the CWB fixed price for No. 1 CWRW was $6.55 per bu. On Aug. 12, the Kansas HRW futures price was $7.74 per bu. and the CWB fixed price for No. 1 CWRW was $6.43.
In eight days, the futures market went up 15 cents per bu. and the CWB fixed price went down 12 cents per bu. I hope that I am not the only one who sees a problem with this.
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Upon discovery of this discrepancy, I phoned the CWB. The person I spoke with couldn’t see a problem with the fixed price going down on a rising futures market.
This person told me it’s the adjustment factor widening, making the price go down, and if I’m not happy with the fixed price, that I can go hire a broker and start paper trading.
Why should I, a producer with the actually commodity in the bin, have to go trade paper in order to take advantage of the rising world market?
Steven Kiss,
Shaunavon, Sask.
