Farmers
Wheat BPC
The BPC for wheat is a pricing alternative being offered by the CWB for the 2006-07 crop year and is available for all seven classes of wheat. Like other BPC programs, you can choose to lock in a price for your wheat, providing greater control over when you are paid and how much you receive.
A BPC is available for the seven wheat classes beginning February 27, 2006. The sign-up deadline is November 1, 2006 at 7:30 a.m. CT. The BPC consists of a basis plus the futures value from the relative wheat markets of Minneapolis, Chicago and Kansas. If the basis is locked first, producers have the opportunity to price the futures until June 30, 2007. You also have the option to price the futures first, and lock in the basis by October 31, 2006.
How the BFPC for wheat works
The BPC enables you to lock in a price for all or a portion of your wheat before the deadline date. The basis is calculated as the difference between the reference grade CWB PRO and the forecasted futures market value, less a discount for risk, time value of money and administration costs.
Using this relationship, an average expected basis level relative to CWB pooled
sales is determined. This relationship is recalculated each time the CWB PRO
is released, and may also be recalculated between PROs, as market conditions
warrant. The reference grades and relevant futures contract for the CWB’s
PPO programs for wheat are as follows:
| Wheat class | Reference grade | Futures contract |
|---|---|---|
| CWRS | No. 1 CWRS 13.5 | Minneapolis Hard Red Spring |
| CWHWS | No. 1 CWHWS 13.5 | Minneapolis Hard Red Spring |
| CWES | No. 1 CWES | Minneapolis Hard Red Spring |
| CPSR | No. 1 CPSR | Kansas Hard Red Winter |
| CPSW | No. 1 CPSW | Kansas Hard Red Winter |
| CWRW | No. 1 CWRW | Kansas Hard Red Winter |
| CWSWS | No. 1 CWSWS | Chicago Soft Red Winter |
The BPC provides pricing flexibility before or after your wheat has been applied against a delivery contract. The BPC is a pricing contract only; producers must still offer their production using CWB delivery contracts during the crop year to access delivery opportunity.
The BPC pricing schedules for wheat are announced every business day at 2:30 p.m. CT and are in effect until 7:30 a.m. CT the next business day.
If you choose the BPC, you receive an additional payment within 10 days of delivering and settling for your wheat. The reference grade is used as the base grade for your BPC. You will receive a premium or discount between the reference grade and the delivered grade based on the initial payment spreads at the time of delivery. These deliveries are no longer in the pool account and are not eligible for CWB adjustment, interim or final payments.
General information
- Wheat BPC producer worksheet
(PDF format 94 KB)
Current pricing is available here or by calling the CWB's toll-free line. You can commit to contracts over the phone by providing your CWB Producer Identification Number along with your Personal Identification Number (PIN). Fax commitments are also accepted at (204) 983-8031. Sign-up application forms are available by contracting the CWB and local elevators.