E Bay for grain

[charliep]

I have only been involved to a limited extent although the individuals
who have done the work are good friends. The cash clearing house is
only a concept at this point with ICE Canada (intercontinental exchange)
looking at commercializing. Still a ways to go before offered and as you
have seen in the past, quite controversial.

There is a company offering a service like you describe in Alberta for
feedgrains but still in the launch stage.

An issue is your question/others question about on standardized
contracts and in some cases dispute resolution. Is much easier when
stored and graded.

A plus is standardized contracts. Current grain contracts (including the
CWB) are written by the buyer with clauses in their favor. Seller has few
rights. A benefit is the contract should be fair for both the buyer and
the seller. Don't know how works in your bay concept but would be a
challenge/benefit here in Canada over and above dispute resolution on
grade for farm stored - malleefarmer has indicated this is a bridge they
still need to cross.

[malleefarmer]

im just a dumb aussie probably related to mr white......

but why dont farmers in canada and or your co-ops build a centalized storage system that holds 120,000 metric tonne of grain,then you could get the ball rolling

i know a group of victorians i think 230 growers have each put in 30k to build storage and hopefully will grow and its for members and non mebers of the co-op

i prempt the reply "we have a single desk wont happen"

look pools are alive and well here abb and awb still doing great,other companies offering pools, henny penny thought the sky was falling in too....

[malleefarmer]

while im at it, in our deregulated market farmers are now informed of shipping schedules and our wharves are fully booked with ships from late dec through to march, viterra has about 60% of the ships and cargill,dreyfus,glencore,toepfer awb have the rest.

some ships are for barley some are wheat its all in the public forum.

So if growers hold out selling whilst buyers need tonnes to fullfill contracts buyer either pay more for grain to fill boat or pay demmurrage fees going to a interesting few months

the same thing happened last year buyer scurrying to fill boats at last minute and cutting into there margin, or filling with pooled grain probably both

wish you guys could enjoy the challenges of a deregulated market

[charliep]

Good question on the larger storage capacity.
Number of crops and class/variety/protein has
been one factor. For wheat, western Canada has 9
classes of wheat - hard red spring, hard white
spring, white prairie spring, red prairie spring,
extra strong gluten, soft white, hard red winter,
multipurpose or whatever the new class is called
and durum. From there 2 to 5 grades and multiple
protein segregations. Very complex to say the
least.

The process to date is to leave on farm and then
call forward into the elevator system as
needed/blend to customer specifications. Not a
good answer but will leave to others to help me.

[ianben]

We have some central stores being built too to offer this blending ability which can then deliver on spec.

But is it an extra cost we could avoid or improve.

Most years the weather will see us produce more of one grade than another.Then finding the goood to blend with the bad or visa versa is the problem

Our feed wheat spec is
Max 15.00% moisture
Max 2.00% admix
Min 72.0 kg/hl
Sprouted grains 6.00%

This is not what I produce nor what buyers necessarily need.

This is an invoice for feed wheat delivered 07/08

Feed Wheat 447765 DI 24044685 02/07/2008 29.360 200.00 / mt 5,872.00 UKZ
Carrier: FRONTIER Vehicle Reg: KX57JDZ
Delivery Ref: 24000450

Weighbridge Charge (PL) 7.50 -7.50 UKE
AHDB-HGCA Levy (Wht) VAT 0.40 -11.74 UKH
Moisture Content Result 15.30 1.50 -44.04 UKZ

Test Description Results
Moisture 15.30 %
Specific Weight 72.10 kg/hl




Feed Wheat 447765 DI 24044792 03/07/2008 29.440 200.00 / mt 5,888.00 UKZ
Carrier: FRONTIER Delivery Ref: 24000450

Weighbridge Charge (PL) 7.50 -7.50 UKE
AHDB-HGCA Levy (Wht) VAT 0.40 -11.78 UKH
Moisture Content Result 15.40 1.50 -44.16 UKZ
Specific Weight Result 71.7 1.00 -29.44 UKZ

Test Description Results
Moisture 15.40 %
Specific Weight 71.70 kg/hl




Feed Wheat 447765 DI 24044995 08/07/2008 28.760 200.00 / mt 5,752.00 UKZ
Carrier: FRONTIER Vehicle Reg: KX57JEJ
Delivery Ref: 24000450

Weighbridge Charge (PL) 7.50 -7.50 UKE
AHDB-HGCA Levy (Wht) VAT 0.40 -11.50 UKH

Test Description Results
Moisture 13.00 %
Specific Weight 73.80 kg/hl

Total Qty 87.560

In this example the buyer managed to claim £117.64 even though the average sample of the three loads was in spec.

About £1.34/tonne

In my concept emarket this lot would have been sampled by me and tested independantly and results posted with lot.
Buyer could then choose to buy or not, but if delivered grain was within agreed margins no claim would be justified.

Would a buyer make claims like this if it where posted for everyone to see?

This would allow buyers to buy off farm and either blend themselves or avoid the lots which had the element which they dislike, low bushel, for example.

[malleefarmer]

We have about 12 segrefgations for wheat more depending on weather, not all sites have all segregations

see somewere viterra are looking at storage and handling in russia and buliding operating it for them

[ianben]

Charlie
A few results from a trial we are doing with Coors on sample accuracy on our malting barley

I took samples of 9 loads into bin, then mixed in a bucket, then sent two samples to Coors buyer for testing labeled differetly.
Then one for independant test.

Results
Moisture coors 15.4/15.7 ind 15.15
Kg/h 66.2/66.0 67.1
Nitrogen 1.71/1.70 1.65
screenings 98/99 98.5

Delivered results
Moisture 14.7/15.1/14.9
Kg/h not recorded but must be over 63
Nitrogen 1.64/1.69/1.67
screenings 99.1/99.3/99.5.

So I believe I can deliver to my sample
and that independant test was in my favor and nearer to what I delivered than their buyers.