zero basis

[bucket]

Braveheart

Call it what you want.

This system is messed up both from transportation logistics and pricing logistics.

[Braveheart]

Maybe not. Maybe we all missed opportunities and are looking for others to blame.

Maybe we need to take stock of what we have (for inventory) and start shopping around. I don't mean taking whatever offer. I mean really shopping it. Trying to establish a good relationship with someone and build some trust. Please notice I said "build some trust" as I know how distrustful many of you are of the grain industry.

Maybe nothing is broken. Some things could be better, like sales and instore info. But broken? No.

[bucket]

Braveheart

If I remember right you are closer to port.

Most farmers closer to port don't have the logistics problem of midpoint sask.

You guys are easy targets to help both the railways and graincos look good in front of government.

And you have a freight advantage that's hard to ignore.

Not complaining just facts.

I was doing exactly what you described shopping my crop around last February for Sept delivery. Still waiting. Fool me once......

I don't come to these threads being stupid. I have done my homework.

That's what is pissing me off.

[Braveheart]

I sit right in the line with the highest freight tariff.

[foragefarmer]

Braveheart

If you live 300 miles from the border you tell me where do you shop it around other the to Canadian grain companies?

[Braveheart]

Yes, shop Canadian, or, if you like, producer car to the US. I won't give any details but, we are sending 2 producer cars of wheat to a US buyer.

300 miles by truck isn't insurmountable. It is being done.

[farmaholic]

I get real excited when people suggest prepricing unseeded crops or ones still in the field then Mother Nature throws us a curve ball and delivers us something that we're told is almost unmarketable. And we either have to take the "discount" or buy out the contract. .

[wakopa]

on the basis discussion,charlie i enjoy your suggestions on marketing grain, you have made me some good money since our freedom.last year i did very well selling my wheat and this year i am sitting between 7.50 and 8.04 for my wheat at 22 dollar basis.i have to lock in my basis sometime,should i cash in or do you think the basis will go down more.thanks for any good info.having fun marketing.

[bucket]

I like to preprice grain I have in the bin prior to the next crop.

If I have a wreck a good price is locked in or I could be blending.Either way it's usually after the wheat is produced.

Also try different points to keep delivery available. Didn't work this year but with new facilities available it could get better.

[farmaholic]

I get real excited when people suggest prepricing unseeded crops or ones still in the field then Mother Nature throws us a curve ball and delivers us something that we're told is almost unmarketable. And we either have to take the "discount" or buy out the contract. .

[bucket]

Does anyone here think grain in North Dakota gets trucked 300 miles?

No wonder Canadian farmers get laughed at.

A government that doesn't support them and forced to truck grain 300 miles plus to get no closer to port.

Brilliant.

[mbdog]

bucket...dunno if your being smart or stupid in this thread, but instead of trying to rip Charlie a new asshole, your anger/frustrations should be focussed on why basis is what it is. If you want the port price of wheat...grow wheat at the port. If you want the US price...campaign to remove the border. It seems to me the bigger problem/hurdles lie with "why " the basis is what it is....not with what Charlie is trying to explain. I haven't got a clue what good basis is anymore....trying to get a handle on "market" forces as they pertain to me and my farm and maybe...just maybe...market forces are having an impact on other businesses...logistics as well. We are in an increasingly transparent economic environment...which is good...but attacking Charlie? The grainco's for their basis?
I'm not saying your wrong, but don't think he's wrong either.

[Tandem007]

We control our destiny. Don't let others do it for you. Higher pricescexisted last year, they exist today. Sometimes even at your local plant. But it requires some effort and staying out of the coffee shop.

[bucket]

Mbdog

You can't be serious? You pay a freight price to get grain to the west coast and you don't expect port price.

Your solution is to grow grain near the port?

And none of you think wheat should be converted to Canadian dollars?

You don't mind giving away the foreign exchange conversion?

Good thing the other customers you are marketing to, understand you are willing to sell for less than fair market price

What exactly happened to the term arbritrage since the open market came to Canada?

And charliep just got called on his remarks about watching basis levels, now his tune is its the net price.

Forget about other factors like fx, narrower basis levels, empty elevators, poor quality late harvests etc.

[charliep]

To be fair to me, I suspect most of my comments on basis were in reference to canola. You may be able to find some place in Agriville where I made a comment but I can't remember doing so.

If I wanted to look at wheat basis, I would look to Montana. I highlight again that 1DNS 13 protein at Great Falls is 75 cents under, 14 protein 85 cents over and 15 protein $2.05 over (all US dollars).

I would also look at net back (likely a better term) which is port based price versus a local elevator price. Not basis relative to futures but rather an alternative way of looking at prices.

In case I haven't been clear, I think there is a tighter market and therefore room for improvement on higher quality/protein wheat. A concern I have is grain companies are blending everything to hit mimimum specifications on wheat and targeting volume.