The Canadian Wheat Board’s marketing programs for wheat, durum and barley are ready to be launched with the start of the 2012/13 (Aug/Jul) crop year, according to an official with the CWB. Pool programs for canola were also in the works.
"There is no question that the CWB is ready to take on its new role in the Canadian grain industry, and has been actively promoting programs," said Dave Przednowek, CWB pool manager.
He said as part of its new role, the CWB has been actively promoting its new subscription-based CWB Market Outlook Weekly publication that is designed to give farmers in Western Canada a better view on what new-crop values will look like, as well as providing some commentary on the various markets.
Commentary on the pool situation for the crops, as well as an update on crop conditions, will also be included.
"I think the pool programs of the CWB are in a good position to take advantage of what is a very different set of fundamentals that this market is trading these days," Przednowek said.
As for whether farmers should be pricing their crops with the CWB at this point in time, Przednowek said "It’s a decision that a farmer has to make, but at this time, and given the extreme volatility of the markets, I think the two CWB pool programs are a pretty good way to manage price risk."
He added that farmers who consider using the pool programs (Harvest Pool or Early Delivery Pool), "should take a good hard look at considering putting a portion of their crop into the pools."
He said the CWB’s two pool programs are only a few examples of the way the farmer can manage price risk. The CWB will also be offering a Cash Out Program for farmers, so that they will have an opportunity to price after delivery, Przednowek said. He indicated this program is similar to the fixed price contract that worked well in the past.
"It’s a reflection of what the current market is doing, so the farmer will have an option to stay in the pool, or after delivery they will have the option to take cash out of the pool that is reflective of the market at that point in time," Przednowek said.
The CWB is also looking to boost initial payments for the new crop marketing year, which begins August 1.
"First of all we are looking at topping those initial payments up so the farmers get a larger percentage of projected returns for the pools up front," he said.
As for the marketing of Canadian wheat, durum and barley to overseas destination, Przednowek said the CWB sales team was already hard at work.
Meanwhile, the CWB also continues to work on its canola pool program and should have something ready to announce for the start of the new marketing year on August 1, Maureen Fitzhenry, a CWB Media spokeswoman said.
Przednowek acknowledged that while details of the canola program were still not ready to publicize, the sales team in place will have no difficulty in marketing canola or any other crops.