ontario winter wheat prices.

[wmoebis]

dalek, If all your nieghbours (competition) were willing to contract for $2 less than you, filling the market. What is your secret to get the extra $2. Assuming equal quality.

[TOM4CWB]

wmoebis,

It is called: Risk; reward.

JUst like you can lock in Canola for Nov 11... take the risk... you MAY get $2/bu more next fall. Some buyers of Canola even provide 'Act of God' clauses!

Dalek... thanks for being part of our discussion!

[Hopperbin]

Dalek also does not have the CWB selling out his grain for that 2 dollars less.
Actually if all the nieghbors were willing to sell for 2 dollars less then when the market runs out of grain to buy then sell for 2 more. I think Dalek knows his cost of production and profit levels really well better than most, that helps. He planted his wheat planning for a profit. If he could not pencil in a profit he may choose to grow something else, I take it his contracts are more grower friendly than CWB contracts. Lets remember he is also unloading his grain at harvest time.

[dalek]

I'm also getting paid, cash in hand, within 5 business days. Guaranteed. Unlike my neighbours selling through the Ontario board who last year got their final payment in April for wheat delivered in July of the previous year, but they prefer dealing with the board.

It has it's ups and downs, but you have to keep in mind our contracts here mostly have the grade discounts spelled out in them and often that is a bigger advantage than the price itself. Delivering last year on contracts with discounts on feed grade wheat of $25/tonne, spelled out in the contract, made a HUGE difference. I was delivering wheat contracted at $250 for $225 as feed grade wheat at the same time as my neighbour was getting $75 for feed wheat and the cash price for grade 2 was in the $145-150 range. You just have to know your costs and know what risks you're willing to accept, no use contracting for a 50% loss. 50% profit is a different story.