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Why is a free market working in australia and not canada

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    Why is a free market working in australia and not canada

    Is it the rail issue only?
    Do we have a sea freight advantage to south east asia.
    Do we have more exporters and a much larger container export sector?
    Logiistics of port access meaning we know who buys shipping slots,how much for and when boats arrive and scheduled to leave all in public forum?
    Do we have a better domestic market I doubt it?
    Have a vast array of forward pricing mechanisms?

    Feed barley new season dec15 prices hit a high of $259 delivered port this week.Historically a good price.

    We had a semi deregulated market for 5 years before full throttle deregulation maybe you guys needed to be eased into it and cash marketing has been around for 20 yrs almost so pooling became irrelevant maybe that's the issue for you guys just need time to adjust your marketing.

    Have a good day of to a harvestor demolition derby today a short 200 km jaunt

    #2
    Example of shipping slots comment a exporter who had a ship booked recently for h1 and h2 wheat found they were short h1 a week before ship was due to leave h1 went up substantially till boat was full, possibly got filled by other traders as well.

    Traders may have lost money on last 15% of vessel that's what happens they make money they lose money.

    A small bunch of farmers tried to sell direct to Egypt in boxes was great on paper oh dear still waiting for money and somehow lumbered with transport costs ugly very ugly that's why I leave it to the big boys, direct marketing is great until shit hits the fan, LC wasn't worth a cracker.

    Comment


      #3
      Mallee, it is working. Basis is weak to discourage delivery. Basis strengthens to call grain forward.

      Farmers ignore signals. But, the market works and arbitrages as well.

      Just because prices are lower than we all wish because of huge crops pretty much worldwide doesn't mean the market isn't working. The market is always right, because, it's the market.

      Our problem is a logistics issue. Railways are deliberately shorting shippers and delaying service. Their ultimate goal is to create a situation where they can open discussions around removing the revenue cap (for moving grain).

      Our industry is collateral damage.

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        #4
        Guess ive incorrectly got the opinion from agriville its not working im not sure sure how many thousand tonne grassfarmer grows but hes against it as well as many others.
        think I might have stirred a hornets nest weres the delete button.....
        enjoy the debate

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          #5
          Haha, it's ok. It's the weekend. Time for a grenade.

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            #6
            BINGO Braveheart, farmers are just collateral damage between the rail companies and Feds/Elevators. We are getting played like a bunch of dummies. Farmers should be sitting down with the railroads, WE ARE PAYING THE BILL. Until the railroads get a better deal they are on strike not hauling target amounts. I would love to see a group of farmers sit down with the Railroads and try to hammer out a partnership. Maybe help each other out a bit instead of pointing fingers.

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              #7
              Mallee, we learned long ago that Lettes of Credit are garbage. Foreign market is full of sharls, but we direct sell every day, avoid the deviants. We learned in the school of hard knocks.

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                #8
                They get a better deal? How about rail rates as a percentage of farmer returns?
                Who has record profits farmers or CNCP?
                How about we get a deal of any kind, guaranteed costs plus a return no matter if we perform or not.
                They will never be satisfied, greed has rotted them completely.
                Their mission statement would read "F*ck everybody"!

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                  #9
                  Braveheart doesn't know what's going on, he is living in la la land. Railways are problem. People aren't delivering because the basis is bad and telling them to not deliver their delivering on a decent basis that's months behind. That he doesn't understand. God it's unreal how some don't get it. Yes when your contracts are months behind you panic and sometimes have to take a shit liking for cash flow that part is right, but all boils back to rail and grain companies having the time of their life.

                  Comment


                    #10
                    SF3, I get it, don't worry. I get that you constantly whine like a little bitch although you've got trucks, and men, and all the resources to haul your grain to Minot, or Coutts, or Red Deer, or anywhere else delivery is possible.

                    Your "they don't get it" everything's a shitshow, Charlie don't know, Tom's on blow, attitude never offers any solutions, ever.

                    No one's ever seen water like you, or back logged contracts, or non existent cash flow like you have knowledge of. But guess what? We've all seen those things.

                    When I talk to the elevators I deal with, the marketing reps all say they can't believe farmers keep contracting wheat at ridiculous basis levels. Why? Are they stupid? Financially overextended and need cash? What is it?

                    Time will prove me right on the railways' plan. They will drag their feet until discussions start on rail reform and then they'll play the revenue cap card.

                    In the meantime either use your fleet of trucks and posse of men, or have cocktails every day not just Friday, and stop ****in bitching.

                    Comment


                      #11
                      Good question, mallee, thanks for asking.
                      On a farm tour to Brazil a few years ago we asked farm and industry people why railways were not being built to new production areas.
                      Answer we got was if just one railway, rates would likely be just under trucking cost. Investors not ready to stump up money for a competitive rail system.
                      Kind of stuck with long distance trucking, don't think they are much closer to solution for their problem.

                      Comment


                        #12
                        United States has river and barge transport system to Gulf of Mexico but relies a lot on rail to Pacific Northwest and St Lawrence.
                        Used to hear complaints about captive shipper areas and rail rates higher than those in Canada.
                        During our inability to get grain to port a year ago, their grower associations played up their system as a reliable supplier and sort of forgot to mention higher rail cost if indeed it still exists.

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                          #13
                          Think furthrest port in oz for farmers in central nsw maybe 600 km so different than you guys so guys in eastern canada if they grow grain have no issues?
                          Know im a simple guy but this is hoing to be ongoing everytime you have a big production year

                          Comment


                            #14
                            Potash, oil products, intermodal, general freight, large increase in Ag production compared to 30 years ago have the downsized Rail transportation causing problems in additikn to a lack of willingness on their part. Can I have a contract that guarantees my expenses and profit please, sounds like a sweet gig for transporting grain.

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                              #15
                              Wow brave take a deep breath you might blow a vessel.
                              Railways are not doing their job. It's not about basis.
                              If you can't see what's going on out their you have blinded ers on.
                              Took Tom a year and all of a sudden shit we have a problem.
                              Yes mallee next big crop the shit will hit the fan again.
                              Brave will live in his bubble not seeing the big picture. Keep telling ritz all is good.

                              Comment

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