Caution

[farmaholic]

Understandable Dave. But I bet when it is finally understood how bad the pea crop is in some parts of Western Canada, things are going to change. I live in an area that grows green peas and there are VERY FEW good pea crops here. There may be some fireworks in this crop again and make my $8.00 prepriced peas look like a real bargain. With that said it was my choice and no one held a gun to my head....

[dave4441]

You may be correct on the market, but if the company can not lay risk off they are doing the right thing by not paying some price that "could" be workable. Companies go broke (and lots of special crop companies have) by not managing their risk. I can name a number of people that went broke because of this. I have said it before and i say it again, managing cash grain positions without futures markets is not for the faint of heart.

[wmoebis]

I don't understand You back the price off so that farmers won't sell then say the risk is too high to make sales, when you don't have product signed up.

[dave4441]

No, i am saying companies have big forward sale programs in place and are focused on executing those sales and purchases already made.

[farmaholic]

Will be interesting to see how many Producer sales contracts can't get filled because of the shitty pea crop. Hope the middle man can source product to fill those, but it may be in their benefit if they can find cheap product....

I think you're absolutely right Dave, I wouldn't buy a bunch without having unfulfilled forward sales or be able to match the new purchases with a buyer. No other way of hedging special crops...

[cottonpicken]

just guessing but isnt the lentil crop in more trouble than peas?

[blackpowder]

Well Grass, I for one am enjoying my marketing freedom. For me it is working very well and I still pinch myself regularly to make sure it isn't a dream. 40% of my acres are in wheat. I would change nothing on the selling side of this crop.
Industry logistics and movement are maybe another thing.

[TOM4CWB]

Blackpowder,

I second that motion! Walk a month in management of a large Canadian grainco... and it is clear we all have risks, rewards, and recks! The CWB is here... the arbitrage function it is supposed to provide... IF THE BASIS IS GREATLY out of line... proves it is powerless to provide the market power it so fondly claimed it possessed.

Personal responsibility is always the best policy!

[furrowtickler]

Buyers are going to get caught with there pants at their ankles real soon.