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• Dec 4 - Wheat - Chicago Soft Red Winter

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Farmers

Fixed price and basis payment contract

2006-07 values for buyout calculation

Wheat (CWSWS)

Effective: December 04, 2006 2:30 p.m. CT
Expires: December 05, 2006 7:30 a.m. CT
The next set of buyout values will be available at 2:30 p.m. CT on December 05, 2006. Winnipeg is located in the Central Time (CT) zone and all deadlines are quoted as CT.

DISCLAIMER
While the following values and calculations are actual prices and buyout formulas, they are intended only for producer information purposes. A Producer Payment Option (PPO) buyout transaction cannot be completed from this Web site. If you have an FPC or a BPC and wish to initiate a PPO contract buyout, please contact the CWB Business Centre at 1-800-275-4292.

	$ US/bushel	$ Cdn/tonne	$ Cdn/bushel
Futures Prices - Chicago Soft Red Winter
March 2007	$5.18	$217.45	$5.92
May 2007	$5.22	$218.75	$5.95
July 2007	$5.01	$209.36	$5.70
No. 1 CWSWS, November 23, 2006 (reference grade) PRO		$205.00	$5.58
Fixed Price		$208.52	$5.67
	Adj Factor	$ Cdn/tonne	$ Cdn/bushel
March 2007 Basis	-2.73	-$6.20	-$0.17
May 2007 Basis	-2.73	-$7.50	-$0.20
July 2007 Basis	-2.73	$1.89	$0.05

Buyout Calculations

Basis Payment Contracts (BPC)
BPC buyout with a locked in basis component:
The greater of:
{(current basis + current adjustment factor + current futures) - (producer's basis + producer's adjustment factor + current futures)} or

(current futures - current futures)

Basis Payment Contracts (BPC)
BPC buyout with a locked in futures component:
The greater of:
{(current basis + current adjustment factor + current futures) - (current basis + producer's adjustment factor + producer's futures)} or

(current futures - producer's futures)

Basis Payment Contracts (BPC)
BPC buyout with a locked in basis and futures component:
The greater of:
{(current basis + current adjustment factor + current futures) - (producer's basis + producer's adjustment factor + producer's futures)} or

(current futures - producer's futures)

Fixed Price Contracts (FPC)
Buyout for FPC contracts:
The greater of:
(current FPC - producer's FPC) or (current futures - producer's futures)

Note: If the calculation results in a negative value, i.e. the producer's contract is of greater value; the buyout charge would be just the $15 administration fee. The CWB does not pay out basis or futures gains.

The nearby futures month is always used for determining buyout costs. If your contract was priced during an expired futures month, the buyout calculation values must use the nearest futures month. For example, a buyout calculation completed in January for a FPC will use the March futures for the day the contract was signed (contracted futures) and the day of the buyout (current futures).

Futures Month	Basis Contract Month Expiry Date
March 2007	7:30 am February 28, 2007
May 2007	7:30 am April 30, 2007
July 2007	7:30 am June 29, 2007

For more information on this or other Producer Payment Options, please contact the CWB at 1-800-275-4292.