cargill pro pricing

[tipsy]

I've been contacted twice to sign some tonnage to this program. I don't see the advantage or benefit of this marketing plan. Anybody use this program last year, if so did you sign up again this year?

[farmaholic]

Details please... we don't have a Cargill on our doorstep.

[tubs]

signed up last year my price iwill receive will be about 7.20 to 7.40 number 2 13 px its a way you don't have to worry about prices. It has a nice fit for some of your grain

[TOM4CWB]

Tubs,

What did they offer on Canola? I have never seen anything but prices in the bottom 40 percentile from Cargill ... so wonder how you managed that!

[tubs]

no propricing on canola

[Grahamp]

Is this the one where you supposedly participate with Cargill as their merchants buy and sell? Avoid that one like the plague. I did a few bushels based on what they told me their track record was. You have to lock basis in separate I did quite well on basis and still only got a few pennies over $6.
However the worst part and the part that still makes my blood boil is how they handle the trading aspect of it. Ok so they send you an email every few weeks that tell you the price and the % sold. So I sign this is the spring thinking just seeing the percentage sold would be educational. So they start and we they have a fairly high percentage sold at say 6.00. Well the price of wheat drops and amazingly my next fax comes and we have a lower percentage sold AND my price sold at is lower. This should be impossible. If we look at it like a pure futures trade. Cargill shorted the market. If it went up they got my grain if it went down they covered their short kept the cash and just moved my sales price lower. I felt it bordered on fraud. Never got a satisfactory answer.

[farmaholic]

I'm sorry but you guys know my thoughts on these smoke and mirror contracts. Sounds like one guy was happy and the other not so much. Do you really think these things are designed for you? Or that the contracting company ever ends up with the short end of the stick?

As the legendary Alf Bryan used to say:

I may be wrong but...

[jake550]

We did some of that "pro pricing" this year. Shoulda known better but the young rep wanted us to try it so we gave in. Thankfully we did a small % of our crop.
It'll be the worst price (by far) we get for any of our 2015 wheat.
Never ever again will we use that "service".

[MBgrower]

Jake, did cargill blow it on the basis or futures, or both? I think these programs need to be monitored by a third party accounting firm to assure participating farmers receive the true final value. How else would you know if cargill isnt skimming from the top?

[jake550]

They missed big time on the futures and we were left on our own to lock in the basis.
We locked in the basis way to soon because it actually was at the time at a historical good level
Live and learn.... Again.... That's farming.

[tweety]

Very few farmers market any grain of any kind.

[tipsy]

Graham has outlined the program fairly well. What confuses we about pro pricing is, is Cargill in business too make Cargill money or my farm money?
That's why I never signed up!

[TOM4CWB]

Tweety,

So... we are all stupid grain farmers who have never marketed any grain... because only the CWB... could... now 'single desk' bad joke is gone...

What only you and large multinationals know how to market anything???

I know... you were only joking... wrong?

[tubs]

myaverage future price is 5.88 us at 85% sold and basis is 1.44 positive the basis you have to pick the longer you waited the better.