Farmers don’t need to rush into the Canadian Wheat Board’s 2002-03
fixed price and basis contracts, says Alberta Agriculture market
analyst Charlie Pearson.
There are more than three months for the program to run and present
values aren’t any reason to rush in.
“I’d recommend patience,” said Pearson.
Basis levels are similar to last year.
Pearson said the fixed price levels are more likely undervalued than
overvalued.
“My suspicion is that we’re probably down at some price lows right now.
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“Having said that, we may not see a better price. But I don’t see a lot
of downside risk.”
Pearson said spring and summer weather may bring some upward movement,
but the upside doesn’t look great.
Some producers may like the CWB’s basis and fixed price contracts
because they allow a farm manager to try to get better prices. But the
value for most is in getting cash in hand, he said.
“It’s a program that better enables farm managers to manage some of
their cash flow and profit objectives. Rather than waiting for final
payments they’re able to get their payments right up front.”
Every business day the CWB will post a fixed price and basis level for
each of the six classes of non-durum wheat that are eligible for the
program.
Prices and basis payments are available at www.cwb.ca under the payment
section, or by calling the board at 800-275-4292.
Producers with personal identification numbers can commit to a contract
over the phone. Producers can also sign contracts at their local
elevators or with local board farm business representatives.
