Canada Markets

The CWB added another option to the mix yesterday to help farmers market additional product for the 2012/13 crop year utilizing the pooling option. The Spring Pool sign-up began on March 11 and will be treated on a first-come-first-served basis and closed at the CWB's discretion. Producers are guaranteed delivery by July 31, while it is my assumption that all grain will be marketed by Aug 31.

Here's a quick summary of the four major pools announced:

Early Delivery Pool: Sign-up deadline was Sept. 28, with deliveries guaranteed by Jan. 31, 2013. The latest pool return outlook (PRO) was announced on Jan. 4, with No. 1 13.5% wheat at $341 per metric tonne.

Harvest Pool: Sign-up deadline was Oct. 31 with deliveries to take place until July 31, 2013, with marketing to be complete by Aug. 31, 2013. This Pool is now closed, with the most recent PRO for No. 1 13.5% protein wheat at $346/mt track Vancouver, announced on Jan. 3, 2013. Note that in the 2013/14 crop year, this pool will be referred to as the Annual Pool.

Winter Pool: The deadline to sign up was Feb. 15 or until the program was full, with delivery to take place by July 31. This pool is now currently closed, with the latest PRO for No. 1 13.5% protein announced at $349/mt on Feb. 1.

Spring Pool: Announced yesterday, the guaranteed delivery period is prior to July 31, while the pool is subject to being closed at the CWB's discretion. The No. 1 13.5% protein PRO was announced at $321/mt.

PROs are viewed as indications based on the forecast for market returns over the life of the pool. While it is far too early to judge the performance of any specific pool, the pooling option may be challenged to post desirable results given the current market environment, where sideways movement in the Minneapolis future through to early December gave way to a $1.44/bu. move lower from Dec. 11, when support was broken, to today's close of $7.91 1/2 on the May future. Falling markets may not be kind to the pool average.

Cliff Jamieson can be reached at cliff.jamieson@telventdtn.com

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