Marketing dealing with short crop and contracts!

[SASKFARMER3]

Time to quit trying to explain how low some crops are going to come in and leave all the experts to their own thinking and talk about farmers fulfilling contracts!
As most no we exited some pea contracts early after the major hail storm that hit our area! I always contract peas at 20 bushels and bin rest! Flood took half acreage and then the hail took half if what was left! Basically their was no way in hell we were going to come close to hitting our contract! Cargill has no act of god so we exited and paid the penalty now than later when the real truth will come out on peas lentils flax and canola production!
Lots are wondering the same on flax and canola fall contracts!
Act of god would have been nice but but not available with our buyer! Next year maybe they won't be our buyer! That's a lesson from 2014 flood! Second is maybe shouldn't be as aggressive selling if wet years continue!
Getting out early I believe will save money on a exit!
Canola might be a easier exit since price is lower than the locked it! We will have enough to cover unless a frost!
Hrs is based on a # 2 13 but a early frost this year that could be a problem down the line! Crop is late all way from moosejaw to swan river on average!
Lots to think about!
Should a second app on barley now make sence! Delay crop and nothing with a frost!
Some spraying wheat with prosario but they missed early flag app! Will it delay crop to much!
This one is a long way from the bin and no two years are the same! Planning is key!

[ado089]

Fortunately, or maybe unfortunately, I don't think the world market are going to allow for much appreciation if any. The bad news for Canadians will be buying back the terrible basis that anyone who sold early enough undoubtedly locked in.

[checking]

Hypothetically, if the hail had doubled its damage, the flood would be a non event. Except much of the excess rain is subsoil bankable for the next crop. And then there are those ugly contracts that are worse than rain.

Augered piling holes push on their own to five feet before hitting harder clay below. Cement needs to be ready as the water rises fairly quickly in this area.

Bodes well for next year.

[Choice2U]

Hey SF3. If price continues to drop and no foreseen upside, I may be able to haul on some of your contracts if price is right....maybe a win-win. Only contracted 2 super B's at ridiculous basis but was smart enough to lock in a $485 futures when market was still higher. We'll keep in touch.

[malleefarmer]

agree with choice2u happens here all the time in Australia just use someone elses grain to fill contracts never a problem

[SASKFARMER3]

Peas were the one I was really worried about after the hail storm! Get to deal with adjusters tomorrow! Probably three! Fun times!
Wheat I have last years to cover also on first canola! Wheat should be ok unless it freezes then who knows! Thanks will post if need some covered.

[BreadWinner]

Good luck filling contracts with others grain, tried this once and they told me too bad so sad. Vittera policy. Only works when the contracted price is lower than current price. I had yellow mustard contracted for $.20/lb and it dropped to $.10/lb, my mustard got hailed out and the neighbor was going to fill it. They told me they would not take his and I was sol.

[dave4441]

Breadwinner, you are talking about act go god contracts. AOG contracts are for particular acres only as your neighbor is not going to fill the contract unless it is in his best interest so grain co takes the gain if it is in his favor.

Impossible for a grain co to not allow you to roll a neighbors grain into your DDC contract.

[BreadWinner]

It was not an AOG contract , you will find most contracts are production contracts and don't allow you to buy them out unless the crop Is 100% written off.

[newguy]

After harvest was putting in a target price on flax .Grain buyer said a farmer can not fill his contract at this price and do you want to fill it? It was basically what I wanted so I sold. So there must be some flexibility in filling them for some companies.

[LEP]

Breadwinner. It happens all the time. In fact my neighbour is filling one of my contracts with Viterra right now.

They won't change the contract to his name and the cheque gets made out to me, so it is kind of a hassle. But very doable.

[Richard5]

I agree with Lep. The other thing is I wouldn't tell them who's grain it is. Work it out with the farmer.

The grain company only wants you to make good on the contract in the perfect world

[Klause]

Hopperbin took over some tonnes I had left on a canola contract this spring... Viterra made out a cheque to him... they did need approval from head office to do it I believe... Hopper phoned them so I can't remember the details exactly.

[Hopperbin]

I did take over that contract which was higher than current price. Not sure why yet clause the price was not as high as you said. But price was higher than current delivery.