Grain industry rippin us off not just wheat

[errolanderson]

wmoe . . . there is no rabbit in the hat. Grain companies don't purchase your grain on spec. Either its hedged or its a back-to-back sale.

If international buyer demand dries up, so will Saskatchewan bids. What's needed to kickstart these bids is fresh demand offshore.

Canola now has fresh bullish news heading into the new crop year which will support both ICE futures and new crop basis levels.

But in my view, demand remains king of commodity markets, not supply. You can have lower prices even if supplies are tight, if global demand is not there to support values. This has intensified globally across all commodity markets.

China is basically in-recession now. They are eating cheaper. And this means deflationary remain alive 'n well.

This global situation is impacting us all across all industries, not just the Sk grain market.

[riders2010]

That's all fine Errol but where do I get the price the sellers of my grain get peas and canary? And in the case of who monitors whether those deals are on the up and up.

[TASFarms]

Durum is a huge rip

[pourfarmer]

Call and ask, I'm sure they will be upfront and honest, as most grain merchants are

[LEP]

Rider, really it doesn't sound too tough the way you explain it.

Why don't you jump in and make a few sales for export. Should be rolling in it by yearend.

[charliep]

$7/bu sounds pretty low for even todays market (higher during the winter). 1/2 or downgrading due to bleach.

[Hopperbin]

Thinking there is a lot of greens around. 20 dollars per bushel a couple years ago does that.

[tweety]

Patience. If its still like this by July 1 markets will look different - but at for example canola at an optimistic 2% of the oil complex, Canada is still a price taker.

[WPmarkets]

For those wanting to know what grain prices are at port, Agriculture Canada publishes a weekly report. The Western Producer on its website publishes a short form of that report. Look for it Wed pm or Thursday am each week.
Here is a link to this week's report:
http://www.producer.com/?p=146612

[errolanderson]

Rider . . . Know what you are getting at, but this a free enterprise, not socialism. What right has the buyer to know your profit margins?

In the grain business, big margins can be made, lousy margins can be made . . . Like any business . IMO, don't be concerned about the buyer, but more concerned about your marketing skills.

[tweety]

farmers marketing. that's funny.

[binthere]

so funny its sad. with the freedom we now have(wish i had in my day) we connot remain complacent. we need to learn to use our ingenuity. expand rotations, grow new crops, bypass the the current system if it does not work for you. no one is holding a gun to our heads anymore. many of us ellude to growing less for more maybe now is the opportune time. instead of expanding following the mythical economies of scale bull we should down size and specilize. or is pride holding many back.

[farmaholic]

-How much are you going produce
-What quality will you have
-What is your break point if the first two go against you
-How much do you want to preprice not knowing what the first three points will be
-What are your cash flow needs and how do you meet them if preprice contracts suck and prices stay poor
-what happens when contracts can't be delivered on for months after their delivery period
*FARMER'S* "MARKETING, that's funny.

[wilagro]

The concept of farmers effectively marketing their grain under the present system in Canada is patently ludicrous. The deck is stacked against the producer from start to finish. The only feasible system would be one where the producer(s) controlled their own marketing agency...certainly one where there was strength in numbers. The present system pits all primary producers against one another in availability,grade and overall quantity of product. Shipping distance and time of harvest are certainly factors as well.

The grain buyers will always win...how can they not do so?

[farmaholic]

This should excite afew people. The guitar gets a little "electric" in some spots. But this may be the only way to regain some market power. Some how som