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Canadian Wheat Board

Prairie strong, worldwide

Farmers

Fixed Price and Basis Price Contracts

Sign-up for 2007-08 BPC and FPC feed barley Pool B runs from 2:30 p.m. Central Time (CT), November 22, 2007 to 7:30 a.m. CT, February 29, 2007.
Sign-up for all other 2007-08 FPC/BPC programs ended at 7:30 a.m. CT, November 1, 2007.
2008-09 (Basis Price Contract)
2007-08

2008-09 Basis Price Contract (BPC) for wheat

Beginning September 4, 2007, producers can sign up the futures portion of a 2008-09 BPC for wheat. The CWB will offer the December 2008 futures price from the relevant U.S. exchange for each of the seven classes of wheat. Producers can price the basis starting February 25, 2008, when the first new crop PRO is released.

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2008-09 Basis Price Contract

Worksheets

Information sheets

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2007-08 FPC/BPC enhancements

Increased tonnage limit for the force majeure program

The tonnage limit for the force majeure program will be raised to 200,000 tonnes for all programs from 100,000 tonnes in 2006-07.

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FPC/BPC Program Details

Prices

The pricing schedule link on the left-hand side of this page is updated daily at 2:30 PM. Prices remain in effect until 7:30 AM Central Time (CT) of the following business day.

Contract transactions

Producers may conduct FPC/BPC transactions by calling 1-800-275-4292, with their Producer Identification Number and Personal Identification Number (PIN), or by faxing the appropriate form to 204-983-8031.

FPC/BPC sign-up forms for feed barley Pool B, terms and conditions, BPC futures and basis lock-in forms, target pricing order and target pricing order cancellation forms and futures month rollover forms are available on the CWB website or through our Fax on demand service at 1-800-275-4292.

Sign-up periods

Program Sign-up begins Sign-up deadline
Wheat
Basis Price Contract – December 2007 futures only September 1, 2006 7:30 a.m. CT November 1, 2007
Basis Price Contract – December 2007 basis and March 2008 basis & futures February 26, 2007 7:30 a.m. CT November 1, 2007
Basis Price Contract – May and July 2008 basis & futures August 1, 2007 7:30 a.m. CT November 1, 2007
Fixed Price Contract February 26, 2007 7:30 a.m. CT November 1, 2007
 
Durum
Fixed Price Contract February 26, 2007 7:30 a.m. CT November 1, 2007
 
Selected Barley
Basis Price Contract – December 2007 basis & futures Sign-up re-instated August 15, 2007 7:30 a.m. CT November 1, 2007
Basis Price Contract – March, May and July 2008 basis & futures Sign-up re-instated August 15, 2007 7:30 a.m. CT November 1, 2007
Fixed Price Contract Sign-up re-instated August 15, 2007 7:30 a.m. CT November 1, 2007
 
Feed Barley
Basis Price Contract (Pool A) – December 2007 basis & futures Sign-up re-instated August 15, 2007 Terminated September 27, 2007
Basis Price Contract (Pool A) – March 2008 basis & futures Sign-up re-instated August 15, 2007 Terminated September 27, 2007
Basis Price Contract (Pool B) – March, May and July 2008 basis & futures) 2:30 p.m. CT Nov. 22, 2007 7:30 a.m. CT Feb. 29, 2008
Fixed Price Contract (Pool A) Sign-up re-instated August 15, 2007 Terminated September 27, 2007
Fixed Price Contract (Pool B) 2:30 p.m. CT Nov. 22, 2007 7:30 a.m. CT Feb. 29, 2008

The CWB reserves the right to withdraw these programs at any time, without notice, subject to market conditions.

BPC lock-in deadlines

Producers who lock in the futures price when signing a BPC must price the basis component by the sign-up deadlines listed above. Deadlines for locking in the futures are listed below. If either component has not been locked in by the relevant deadline, it will be locked in automatically by the CWB at the price posted for that date.

Futures month Futures lock-in deadline
Wheat
December 2007 7:30 a.m. CT November 30, 2007
March 2008 – Pool A feed barley only 7:30 a.m. CT February 1, 2008
March 2008 7:30 a.m. CT February 29, 2008
May 2008 7:30 a.m. CT April 30, 2008
July 2008 7:30 a.m. CT June 30, 2008

Basis rolls

If producers want to lock in their futures at a date beyond their basis month expiry date, they may choose to roll their existing basis to a later month. This can only be done prior to the expiry date. Producers may also choose to roll their basis backward to an earlier month. There is a $1.00 per tonne charge for each roll.

Reference grades and deliverable grades

FPC and BPC values are quoted based on reference grades. However, grades other than the reference grade are deliverable against the contract. Below is the list of reference and deliverable grades for each program.

Wheat

Reference grade

Deliverable grades

CWRS

No. 1 CWRS 13.5

All grades and protein except sample grades and mixed grain

CWHWS

No. 1 CWHWS 13.5

 

  CWES

No. 1 CWES

 

CPSR

No. 1CPSR

 

CPSW

No. 1 CPSW

 

CWRW

No. 1 CWRW

 

CWSWS

No. 1 CWSWS

 

Durum

No. 1 CWAD 13.0

All grades and protein except sample grades and mixed grain

Selected barley

 

 

Selected 2-Row

Standard Select

All select grades except sample grades

Selected 6-Row

Standard Select

 

Feed barley

No. 1 CW

No. 1 and No. 2 CW

Feed grades of wheat and durum are subject to a feed discount to adjust the value of the contract to the current feed wheat price. The following grades are considered to be feed grades: Canada Feed, No. 4 CWRS, No. 4 CWHWS, No. 2 CWSWS and No. 4 and No. 5 CWAD.

Target Price Service

The CWB offers a Target Pricing Service for the BPC and FPC programs that allows producers to place an order to lock in a specific price for either the basis or futures portion of a BPC or a fixed price for an FPC. Target pricing allows producers to take advantage of potential futures rallies while leaving the responsibility for monitoring daily market conditions to the CWB. Unfilled orders can be cancelled at any time. There is no fee for this service.

Force Majeure

The CWB offers a force majeure clause, commonly known as an “Act of God” clause, to protect against production risk. Producers have the option of selecting the force majeure clause when committing to an FPC or BPC until the earlier of May 1, 2007 at 7:30 a.m. CT or until the 200,000 tonne limit is reached. Only 50 per cent of anticipated production of any given type and class of grain is eligible for the force majeure provision. The force majeure option only covers production loss not quality downgrading. Producers must deliver against force majeure contracts in priority to any other contracts of the same grain and class, including deliveries to the pool. There is a $3.00 per tonne charge for this option.

Assignments and Buyouts

Producers who want to get out of all or part of their contractual obligations may choose to assign tonnage to another producer or to buy the contract out. There is a $15 administration charge per assignment. The cost to buy out a contract will vary depending on the relationship between the producer’s contract price and the current contract price and the current futures and the contracted futures. Buyout prices are posted by the CWB after the sign-up deadline each year. They are intended for information purposes only. To initiate an assignment or a buyout, please call the CWB at 1-800-275-4292.

Pricing Damages

FPC and BPC contracts require 100 per cent delivery of the tonnage commitment. Failure to do so by the end of the crop year will result in the assessment of pricing damages on any shortfall tonnage. Damages are based on market values on July 31.

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2007-08 Fixed Price and Basis Price Contract

User guide

Worksheets

FPC producer worksheets
BPC producer worksheets

Information sheets


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