Grain World: Pooling, other options discussed for Prairie wheat
Western Canadian farmers will be marketing their wheat, durum and barley in an open market for the first time in generations with the end of the Canadian Wheat Board (CWB) single desk at the start of the 2012-13 crop year on Aug. 1.
Some farmers may choose to continue marketing their wheat through new voluntary pools the revamped CWB intends to offer, but there will also be other pricing options, speakers said here at the Wild Oats GrainWorld conference on Tuesday.
"If there?s one word to describe the future going forward, it?s ?volatility,?" said Keith Bruch of Winnipeg-based Paterson GlobalFoods.
As a result, many farmers will likely be looking to market some of their wheat, durum and barley through pooling, as they did with the CWB historically. However, other pricing options will also be available.
A significant aspect of the new voluntary CWB will involve pooling options for producers, said Gord Flaten, the board?s vice-president of marketing and sales. He highlighted some of the benefits of pooling in an open market, but said the details of those options will be released over the next few weeks.
From a farmer?s standpoint, price pooling will provide effective and offer hassle-free risk management, said Flaten. Pooling is also designed to maximize returns to farmers, in order to make sure they keep signing up in subsequent years. CWB pools will also provide more delivery options and flexibility in terms signup times and grading.
Flaten also foresaw many producers marketing some of their grain through a pool and another portion in the open market. In that scenario, the pool will provide producers with a good performance benchmark for the rest of their marketing program.
From a grain company?s standpoint, CWB pools will allow them to handle grain without taking a long position.
Read more at http://agcanada.com/daily/grain-worl...prairie-wheat/