cwb office


The CWB has officially entered the open market.

President and CEO Ian White launched the new pool and cash contracts Thursday morning. "Two pools, three cash contract programs and malting barley production contracts are now available for farmers to sign," says White.

He says the CWB will be a viable option for marketing grain. "The programs we are unveiling today can deliver what farmers want. They are the product of a great deal of work and a lot of consultation with farmers themselves," he says. "We know many farmers want to use price pooling because they understand its benefits. The CWB is the only marketer that offers pooling for farmers."

Chief Operating Officer Ward Weisensel also announced the CWB has reached a handling agreement with South West Terminal, based out of the Gull Lake area in southwest Saskatchewan. A handling agreement with Cargill was announced earlier this month, and Weisensel says they expect to finalize agreements with other handlers in the next few weeks.

"We expect to reach agreements very quickly with all prairie grain companies," he says.

He notes price indicators for the CWB's new programs are posted and will be updated in real-time on the CWB website. "Farmers can now come to us with all their marketing needs, and we will be working very hard to earn and retain their business. We believe we can serve farmers very well in the new era that we're facing together," says Weisensel.

The CWB's New Programs:

Price pools

Pooling is a time-tested strategy for risk management, ensuring farmers are never forced to take prices from the bottom of the market, or left chasing an elusive market high. Instead, it returns the average received from all markets across the entire pooling period, meaning farmers keep all of the profits from their grain sales and share in any price rallies that occur after they sign a contract. Sign-up begins March 29.

Harvest Pool: runs from August 1 to July 31. Sign-up ends October 31. Twelve reference grades for Canada Western Red Spring wheat, five reference grades for durum, plus Canada Prairie Spring Red wheat, Canada Western Red Winter wheat and two-row malting barley. Delivery is guaranteed by July 31. Can be signed directly with the CWB, with grain-handler chosen later.

Early Delivery Pool: runs from August 1 to January 31. Sign-up ends September 28. Delivery is guaranteed by January 31. Same grades as above. Can be signed directly with the CWB, with grain-handler chosen later.


Cash contracts

Cash contracts can be used in combination with price pooling to build a complete marketing strategy, tailored to suit farmers' individual risk and financial objectives. A wide range of reference grades are offered. Target pricing is also available. Sign-up begins March 29.

Deferred-Delivery Contract: provides upfront price certainty. Farmers lock a flat price and reference grade, then negotiate a delivery date with their grain handler.

Futures-First Contract: fixes a futures-based value derived from farmers' choice of grain futures exchange and maturity, with basis and reference grade locked in later. Farmers negotiate their delivery period, pay no brokerage fees and have no margin calls. Futures can be locked in directly with the CWB.

Basis-First Contract: fixes a basis and reference grade, with a futures-based value locked in later. The basis is fixed through their grain handler. Farmers negotiate their delivery period, pay no brokerage fees and have no margin calls.

Real-time pricing: Farmers can find real-time price indicators from the CWB's Web site or by calling the CWB, with values that change daily between 9:30 a.m. and 1:15 p.m. as markets fluctuate. A handy online tool has been developed to make it easy for farmers to follow CWB prices.


Malting barley production contracts

A production contract guarantees a market for a farmer's malting barley, even before seeding or harvest. It provides assured access to the CWB malting barley pools, plus the option to switch to a cash contract. These contracts are available for two-row malting barley.