Canola Shipping

[rodb]

Is anyone else out there still trying to get delivery of their november Canola contracts. We have just delivered ours to one comapny but await to deliver to another. Is it time to get the contracts a bit more even on penalties for none compliance? Should you get the basis changed to the delivery month that you delivered on if it was better than the one you wnated to deliver in?

[boarderbloke]

How about them paying out the cash value at the end of Nov/contract, then they can pick it up when ever they want(except weather), provided it out by July 31.

[jrlee21]

We farms will have to make these companies change the contracts so there are penitily for not holding up there side of the contract.

[clubber83]

We are having the same issue now with our Nexerra through Richardson. Had 40tonne priced and booked for November delivery. Agent was reminded several times that if they wanted to get our inputs paid off, that they needed to move this canola or lose a customer for 2011. Bills are due jan 31 and they called yesterday wanting delivery. Nov had a $35 dollar premium and now january is 42. I told them that I wanted the 42 premium for storage. They said I am sol. Talked to a few other companies at cps and Louis Dreyfus is offerring a $35 premium no matter which delivery period is chosen. They are also offerring to pay $10 for every month that they dont allow delivery of origional contract.

[clubber83]

sorry to clarify. Dreyfus is offering that package on 2011 crop

[booboo04]

My Novemeber contract with Richardsons was not delivered until late Decemeber. So I checked the contract terms. For certian reasons, Richardsons can extend the delivery period two months, and then again for one month after that. Valid reasons are rail company failures, or mechanical breackdowns. So in my case the problem appears to be the rail company, not Richardsons.

[RedRiverMB]

Read the contract, change the delivery options they
have if you do not like them. Sometimes they will and
other times they walk away. Some of those contracts
are very bias against you and your options for cash
flow if they decide to move delivery or time of delivery.
For fall 2011 Viterra had no issue with us putting in
any change must be mutual and if not, delivery and
settlement is as stated by end of that month.

[bucket]

Its been years since had anything to do with nexera but the excuses are the same. They crush this stuff in canada, probably sask or alberta. The grain company could use b trains to move it.

Most people would tell them to get it or it is getting sold on the regular market at another company, since the deadline has passed. Most would still be money ahead since they don't want to pay storage costs. Richardsons should maybe invest in storage since they figure it is so cheap.

[rodb]

Red River MB
Good to know that they will allow changes. This is the third year we have had Canola contracts that were late in being able to deliver and there is a ground swell revolt starting to take place.

[agstar77]

No problems with Bunge. Delivery as promised.