Ok Canola Basis is Zero In Eastern Sask, Are all the Bins Empty

[wmoebis]

I was just wondering how the system worked. I beleive if one has a contract to deliver within a time frame they must deliver when called or risk being penalized. I was interested if one could write into the contract for compensation if it worked the other way.

The grain companies have obligations to meet and rely on our deliveries to meet them, or we pay. However producers have obligations to meet but have no recourse if they grain companies don't fullfill their dates. Many have set up payments around deliveries and pay penelties to lenders/suppliers if they don't pay up on time.

As we move forward and will be selling more and more under contract this may become a bigger issue for many.

[Burbert]

Contracts kin be written in all sorts a
ways. Butt and its a big BUTT. Will
anybody deal wit ya? Big/boys/girls will
get SPECIAL deals, I guess cousin money
talks. Little boys/girls get the
leftovers, always have, always will, after
all framers are price takers not price
makers! Did ya ever here that pilea crap
before?

[charliep]

You need to read your contracts as to each company handles somewhat differently. Most have a 90 day window after the end of their contracted period with no carry paid (interest and storage). You need to read the contract further for actions the 90 days.

Way off the topic of canola basis but have heard more conversation about standardized contracts more fair to the farmer side. This would have been a feature of the clearing house project sponsored by Western Barley Growers Association.

A theme from this last winters ARD meeting. READ YOUR CONTRACTS (NEW WHEAT CONTRACTS AND EXISTING CROPS), KNOW WHAT YOUR COMMITMENTS/THE BUYERS COMMITMENTS ARE AND BE PREPARED TO LIVE THEM.

Before Burbert beats up on me (he will), I will ask how many people took the time to read their CWB contracts (delivery and pricing)? They had rules that really weren't/aren't much different than open market ones.

[charliep]

I should note the contract is more than the front page they fax you to sign with contract details like price, grade, quantity, delivery period period and so on. It is the 3 to 5 pages of fine print that follow the front page (or in many cases the reference to a link on their website.

[charliep]

To the original topic, I would be watching the charts. Nervous when a market rallie unbated for over 2 months.

[URL="http://www.farms.com/markets/?page=chart&sym=ZSK12"]May soybeans[/URL]

Corn and wheat looking more sickly (or least in my eyes).

<a href="http://www.farms.com/markets/?page=chart&sym=ZCK12">May corn</a>

<a href="http://www.farms.com/markets/?page=chart&sym=MWK12">MGEX</a>

[errolanderson]

It's just a matter of time until China's
slowing economy hits North America full-
on. Canola and soybeans remain heavily
overbought.

November canola 550 puts traded today
for $21/MT.

There are warning signs around commodity
markets right now.

Errol

[farmaholic]

Bucket: Besides what wmoebis said about forward selling to meet payments then companies don't take it on time, who pays the penalties? Here are some other considerations, hauling earlier than the contracted delivery period on spring banned roads(smaller loads), or when it's 40 below with a wind. Giving them product earlier than contracted, doesn't this keep them out of the market trying to secure a supply because they can use already contracted grain?
I realize everyone needs to be flexible. If we get too pushy they may just push back when they have the opportunity as well. I'm not preaching because I've delivered early myself in the past but I can't help but to wonder if they needed grain why call contracted grain earlier when they may be able to access it in the market? Just thinking. (dangerous)