Yield for Wheat is a Droping World Wide!

[boarderbloke]

If everyone is still dry the fall, farmers as a group, really need to push for Act of God clauses in any 2016 production contracts. It would be an opportunity where there are enough farmers in the same boat that as a group, we could have some unity. We can't continue to be burdened with so much risk. Even if your in a wetter area, why wouldn't you want to have an AofG clause.

Our area is wet, but it's been cool, our crops are later than normal, frost this fall is still a real possibility, particularly if there is such a large dry area to the north/west.

[bucket]

Farmaholic

This is going to be one interesting year.

Inventories are dropping at the west coast. Supplies are dropping on the prairies.

All that is left on the good farms is some sweeping.

Not sure how this plays out but I suspect after this weekend most farmers are under water on the inputs.

[farmaholic]

I will not sign a production contract without an AOG. A local terminal lost out on some flax business with me for that very reason, someone else who was willing to provide the AOG got the flax.

[boarderbloke]

I was talking all crops, wheats, canolas, durum, anything.

[farmaholic]

You won't get any argument from me boarderbloke.

[cottonpicken]

Snowball in hells chance any risk will be off loaded i expect it to get worse with no act of god clauses being offered.

[boarderbloke]

I guess if no one forward prices and the rains return and there is production, "they'll" be waiting to beatch slap us right back into place.

If they don't offer AofG, and "we" don't contract, then they won't make sales. If there's no production, they won't have to worry about filling sales, if there is production, they will maintain their wide basis as a source of income and continue to keep all the currency exchange to pad the profits over the basis.

[cottonpicken]

Maybe your right wasn't thinking about that angle on act of god and forward production and pricing protection for them.

[fjlip]

Worst case, poor yields and poor quality equals NO demand and No price, like 2004. IMO MB sounds bumper crop, will be focus of media/govs.

[samhill]

Well yeah JW except that most grain co's are hooked at the head hip and thigh with a large animal production business.

[samhill]

The COG and arbitrage are important.

[samhill]

Try google and wikipedeia.

[sawfly]

farmaholic good laugh about signing
contracts to get delivery.
and then still not getting delivery for another 3 months.
we have been had so many times.

luckily i have no canola or wheat contracted ,
but am on the hook for some peas.
with the late filling of contracts the last few years, they must owe me a year or two.
i bet i won't get it.

[furrowtickler]

I have said before - there will be a record crop in Mongolia to save the day - just watch

[fjlip]

Hopper's/Klause's record crops will save the 98%, Producers says NE has good crops, hailed on some today.