The CWB has announced initial payments for farmers who sell wheat, durum and malting barley into the voluntary wheat board’s early delivery and harvest pools for the 2012-13 crop year.
Initial payments are set at $255 per tonne for No. 1 Canada Western Red Spring wheat 12.5 percent protein, $257 per tonne for No. 1 Canada Western Amber Durum 12.5 percent protein, and $230 per tonne for Select Canada Western Two-Row designated barley.
A complete listing of initial payments for all grades of wheat, durum and malting barley will be posted on the CWB website at www.cwb.ca/payments.
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The CWB also confirmed that it will soon issue its first pool return outlooks, or PROs, for 2012-13 pools.
Ian White, chief executive officer of the CWB, said the amount of grain committed to the CWB’s 2012-13 pools should not be significantly affected by buoyant grain markets and strong cash prices that are currently available.
The CWB has unofficially suggested that it could handle as much as one third of the wheat and barley harvested in Western Canada this year.
“I think pools are still a very effective management tool because markets are extremely volatile at the moment,” White said.
“There are string cash options out there and the CWB has deferred pricing contracts and cash options themselves…. The pools will be very competitive with the current cash prices and they will be capturing these values as we go through the harvest period.”
The CWB recently announced that initial payments would be set at 75 percent of anticipated final pool returns.
The agency said market conditions have strengthened since it began calculating initial payments for the 2012-13 campaign.
As a result, initial payments will be adjusted as the CWB locks in higher values, according to a July 31 news release.
Pool volumes may also be limited depending on farmer demand and logistical capacity, the CWB said.
