Help?? Basis, on NB Deferred Deliever Contracts

[boarderbloke]

Locked in (or thought is was) , some July canola with a grain company(that does like to use a lot of orange paint). They operate using a freight price and a basis( or -), together this sum (otherwise typically combined from my experience) is subtracted from the futures. Only I find out now that their freight price is only estimated, and that it could rise between now and July! I've dealt with other companies and was certain that locking in a basis or delivered price was just that, locking it in! Am i wrong here, is this common practice during a crop year(I've understood it could change if it was forward to a new crop year) anyone else dealing with this company, did you have to arm twist to get something "Locked In" ??? What about other companies???

[broker]

Freight risk should not be your concern unless stated in the contract. Amazing, now grain companies are going to try and pass that on to the farmer as well...
Try telling them that your tonnes were just "estimated" and see what they say!

[melvill]

boarderbloke, I've heard of your situation before with the orange and yellow grainco. First of all, have you actually signed a contract? Secondly, have you read the contract fine print? If you haven't read it, I'd suggest you do that soon or sooner. If you're not comfortable reading the contract or can't make any sense of it, ask a local lawyer to read and summarize it for you. They usually don't charge too much for that. If the contract states what you think it says, ask the company how they are going to arrive at a freight rate. What rate scale are they going to use - 25-unit, 50-unit or 100-unit spot?