Online farmer calendar
Feb 17, 2012
2011-12 adjustment payment deferal deadline
Feb 20, 2012
CWB open on Louis Riel/Family Day
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Farmers
2011-12 Basis Price Contracts
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Effective Monday, February 6, 2012, the CWB is changing the hours of operation for its 1-800 line. |
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Please ensure the tonnage you commit to this Producer Payment Option (PPO) program does not exceed your delivery contract tonnage. If you cannot deliver 100 per cent on this PPO contract, you will be subject to pricing damages. |
User guide
What is it?
The Basis Price Contact (BPC) is a pricing option that is comprised of three components: futures, basis and adjustment factor. Either the futures or the basis can be signed up first and the other locked in by the relevant deadline date.
The adjustment factor is always applied at sign-up but is set to zero until the start of the crop year. After August 1, the adjustment factor could have an impact on your price.
View our PPO programs at a glance (PDF) to help determine which choices are right for you.
When is it available?
| Futures month | Futures
sign-up start date |
Basis sign-up & lock-in start date |
Sign-up deadline | Lock-in deadline |
March 2012 |
Dec 20, 2010 |
Feb 28, 2011 |
Feb 24, 2012 |
9 p.m. CT Feb 24, 2012 |
May 2012 |
Feb 1, 2011 |
Feb 28, 2011 |
Mar 15, 2012 |
9 p.m. CT Apr 20, 2012 |
July 2012 |
Feb 16, 2011 |
Feb 28, 2011 |
Mar 15, 2012 |
9 p.m. CT Jun 22, 2012 |
The CWB reserves the right to withdraw these programs at any time, without notice, subject to market conditions.
If your contract is not completely locked in by the deadline date, your contract will be automatically locked in using the values posted on the deadline date.
Basis-first contracts can be rolled to a later month, if you want to have longer to price your contract. You can roll all or part of your basis to another month.
Where do I find prices?
Prices are offered each business day from 3 p.m. to the expiry time posted on the daily pricing schedule.
Prices offered are based on in store Vancouver or St. Lawrence values. You must deduct country handling and freight to determine your farmgate value.
Quoted prices are based on a reference grade.
Reference grades
| CWRS | No. 1 CWRS 13.5 |
| CWHWS | No. 1 CWHWS 13.5 |
| CWES | No. 1 CWES |
| CPSR | No. 1 CPSR |
| CPSW | No. 1 CPSW |
| CWRW | No. 1 CWRW 11.0 |
| CWSWS | No. 1 CWSWS |
For your convenience, the CWB will e-mail you the prices for all programs. When you subscribe to this free service, you can choose to receive all prices or only those for the class or classes of wheat you grow.
Subscribe to the Daily PPO Prices bulletin
To help you make pricing decisions, we offer an online price pace calculator. The calculator gives you an estimate of the amount of wheat you've priced.
How do I get paid?
When you deliver your grain to the elevator you advise the agent to apply the tonnes to your BPC. If you delivered grain before signing up a BPC, you can advise us to apply the deliveries at the time of sign-up.
You will receive your payment in two parts:
- the initial price at the elevator for the grade you delivered and
- an additional payment from the CWB on any tonnes that are fully priced within 10 business days of the cash ticket being reported to the CWB. If you delivered more tonnes than you priced, you will receive the additional payment when you price them. The additional payment is always based on the reference grade initial price.
Additional payment calculation: BPC contract price – reference grade initial price + incremental payment value – feed spread adjustment (if applicable).
Once you’ve received your additional payment, you will have received the full value of your pricing contract. You are not eligible for any adjustment, interim or final payments.
When can I deliver against the contract?
You must sign a delivery contract with the CWB and wait for delivery calls.
What can I deliver?
All grades except sample and mixed grades can be delivered against your BPC. However, feed grades are subject to an additional feed spread adjustment.
What are my risks?
Quality risk: BPCs are for milling grades. You can apply feed grades but they are subject to an additional feed spread adjustment. Feed grades are: No. 4 CWRS, No. 4 CWHWS, No. 3 CWSWS, CW Feed and CW General Purpose.
The feed spread adjustment adjusts the value of your contract to reflect the current spread between milling quality and feed values. The feed spread adjustment is posted on the daily pricing schedule. It is locked in on the cash ticket settlement date.
Production risk: BPCs require 100 per cent delivery. If you are short on your contract, you have the option of assigning the contract to another producer or buying out the contract. The buyout cost is based on market conditions. We also offer force majeure on the BPC program to protect against production risk.
Can I target a price?
Yes, the CWB provides a free target pricing service. Target orders are matched against settlement, not intra-day values. You can target the basis or futures to sign up a new BPC or to lock in an existing BPC.
Target pricing orders can be cancelled at any time before they are filled.
Target pricing cancellation form
How can I sign up and lock in prices?
If you subscribe to e-Services, you can complete a sign-up transaction.
You can call the 1-800 number (1-800-275-4292) between 3 p.m. and 5 p.m. CT (Winnipeg time). You must provide your CWB producer ID number and four-digit PIN.
You can print off a form on the Web site and fax it to 1-204-983-8031.
The exchange for physicals option allows you to price futures on an existing basis-first contract or to sign up a futures-first BPC.
Who can help me if I require more information?
You can contact Program Service Representative:
| Mavis Willson | 204-250-4469 |
You can call 1-800-275-4292.
Historical price charts
There are charts on the Web site showing historical basis pricing information.
Terms and conditions
Please ensure you understand how the contracts work before you commit tonnage to a pricing contract.
