Marketing Reps.

[ado089]

Bidding is out in the open, it's a true reflection of supply and demmand. Basis levels are more concealed and therefore generally do not trigger a "if they are willing to pay that maybe we should" response from the market. Aslo open market bidding generaly works it's way through all the futures month so they can't just steal our grain now fill up and pay even less for new crop. At least Nov was up $5 and change today.

[bgmb]

Buy our seed and get a special basis... Deliver some canola now and get a special basis later... haha i got a better idea how about you *uck yourself instead of trying to f(&k me all the time.

I have totally boycotted all these types of deals.

[mbratrud]

Yes "Package Deals" are ussually a bad deals.

[Jagfarms]

It is easier for grain terminals to get rail cars at seeding time.

Lots of terminals are paying a bigger trucking premium at seeding time or when the road bans are on because it is easier for them to get cars during that time.

[furrowtickler]

I have touched on these speacial deals before, most of the time they tie your hands and feet leaving you with less net money.

[bgmb]

Funny part is on seed and chem small independents can do as good or better on inputs than the big boys can and I would far rather buy from them. These line companies are vicious and i think it will only get worse.

[ado089]

I've worked for both and the truth is that grain companies make more money on your grain then you do. Ill support an independent before I buy from a line company even if it means paying a little , and only a little more.

[TFLN]

ado089, still not understanding. Isn't a narrow basis offer out in the open too? We all call around to Viagra, cargill, pioneer etc to see what they are bidding when one of them offers a "special basis". And if "open market" bidding drives up futures what do you think will happen to the basis?

[ado089]

A narrow basis or even a positive basis is out there in the sense that they can call you or you can call them. However these are generaly localy varriable and on a good day good day add up to $25/mt price difference. Where as if they are bidding in the open market everyone gets to see that someone wants canola, this usualy results in the other players, specutlators, hedge funds, ect thinking, "hey there's a shortage of canola out there, maybe we should invest in that" resulting in a more robust price movement.