The CWB is launching two new pools, including one that enables each farmer to choose a price based on futures values.
The Winter Pool will operate like traditional pools and features a six-month pooling period that enables farmers to capture late-season prices.
The Futures Choice Winter Pool is similar to the Winter Pool, but gives the flexibility for farmers to choose futures values.
CWB president Ian White said in a news release the offerings were prompted by farmer feedback and grain-pricing needs.
“Farmers who have not yet committed their grain now have new options. Those who believe the latter part of this crop year will return high prices can take advantage of the Winter Pool to achieve the seasonal average,” he said in a news release.
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“Or, they can use the Futures Choice Winter Pool to choose the specific times when they think futures values are at or near their highest.”
The Winter Pool opens Dec. 12 to farmer sign-up for various classes and grades of wheat, durum and canola.
The sign-up deadline is Feb. 15, with delivery guaranteed by July 31.
Farmers can switch grades at no cost until the sign-up deadline or switch to an available cash contract for a nominal fee.
The Futures Choice Winter Pool is open to Canada Western Red Spring wheat and is based on Minneapolis Grain Exchange futures.
Farmers can sign up between Jan. 7 and Feb. 15 and then lock in a futures value of their choice any time before June 21, with delivery guaranteed by July 31.
Compared to cash contracts, the CWB said, the Futures Choice Winter Pool provides basis pooling, more grade flexibility, grade and protein spreads that represent the market for the pooling period and the ability to market through any participating grain-handling company.
Target pricing will also be available.
Both pools will operate on a first-come, first-served basis and may close before the sign-up deadlines if maximum pool tonnage is reached.
The CWB said the Pool Return Outlook for the Winter Pool puts No. 1 CW red spring wheat, 13.5 percent protein, at $362 per tonne at port. The initial payment is $261.20.
The PRO for No. 1 durum, 12.5 percent protein, is $354. The Initial is $257.
The PRO for No. 1 canola is $625 and the initial payment is $475.
A list of the PRO for all grades is available at www.cwb.ca/pro.
CWB will publish the Futures Choice Winter Pool PRO by the time sign-up begins on Jan. 7.
Given current PRO assumptions, farmers in the Futures Choice Winter Pool can expect to achieve a final return for No. 1 CWRS 13.5 percent protein in-store port position that is made up of the futures value they lock in plus $5 to $10 per tonne.
