CWB has launched two new pools for farmers, including one that enables each farmer to choose their own price based on futures values, according to a company press release.
The Winter Pool will operate like traditional pools, and features a six-month pooling period. The Futures Choice Winter Pool includes the option for farmers to choose futures values in order to capture market peaks.
The Winter Pool opens December 12 to farmer sign-up for various classes and grades of wheat, durum and canola. The sign-up deadline is February 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 (CWRS) wheat and is based on Minneapolis Grain Exchange futures. Farmers can sign up between January 7 and February 15, 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 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.
CWB’s first Pool Return Outlooks for the Winter Pools are available in full at www.cwb.ca/pro.