Chinese Wheat Auction Prices From Reserves...

[wmoebis]

By no meens. I am talking about maybe a single ship load of specialty spec grain. Maybe No1 Lentils that could bring a premium instead of farmers selling for the same price as a 2. Something along that idea.

Klaus thinks outside and has made contacts maybe he has ideas

Or can shoot idea down.

[sumdumguy]

Pas Moi Klause, all those countries you mention are a big no-no in our business. Letters of credit mean nothing in a foreign transaction. I'd like you to comment as to whether any one of these guys qualifies for EDC? Our experience has taught us the US and Europe have the most reliable customers. We had customers in Mexico who first took us down to Mexico City, wined and dined us, flaunted their wealth and were approved by local trade department, bought and paid for 3 shipments of Canary, no problem. They deposited the payment at our bank and the goods were released by us at Laredo. Sounds safe- yep until his friend works at the freight forwarders and releases 2 loads without our documents to release. When we tried to chase it down they no comprendez. We had 8 loads en route and the remaining six were turned around and brought home. The only way we sell is on prepayment only or we don't send product -simple as that. We learned the hard way, but not too hard.

[stonepicker]

Ah!!! free enterprise! During the --- days we would be visiting klause in jail if he tried that. Free at last!!! And instead of getting 6.50-8.00 per bushel we'd be getting 4.50-5.00 Free at last!!!

[Braveheart]

Middle East = very risky.
Eastern Europe = very very risky.
Asia = very very very risky.

[Guest]

I have enough stress putting grain on a truck to send it 3-4 hours away, let alone putting it on a ship across the world. We have never had any issues with the trucks but there is always the chance. Good for you Klause. DYODD as someone put one time. If you figure it out and need some product let me know!!! Very risky dealing with other nations. Just ask the big boys selling wheat to Egypt with ergot in it. Took a beating on those cargos.

[ajl]

These prices are reflective of Chinese internal prices and are less than what the government paid the peasant farmers for the wheat in the first place. They have no relevance to the international market. Just like in Japan #1 CWRS wheat sells for $20 or more a bushel as the government buys the imported grain and then resells at a profit to domestic millers. Works as a tax on food in Japan. In China, government connected companies source wheat weather internally at set prices or on the international markets and then sell to millers for a markup. I am sure this represents dumping of surplus in China.

[ajl]

These prices are reflective of Chinese internal prices and are less than what the government paid the peasant farmers for the wheat in the first place. They have no relevance to the international market. Just like in Japan #1 CWRS wheat sells for $20 or more a bushel as the government buys the imported grain and then resells at a profit to domestic millers. Works as a tax on food in Japan. In China, government connected companies source wheat weather internally at set prices or on the international markets and then sell to millers for a markup. I am sure this represents dumping of surplus in China.

[Klause]

You can't lump a whole country into one group. There's mom and pop bakeries that want good quality flour and want good wheat to make their own. It's stupid simple.... we shipped a partial load after getting paid by visa. One of our new contacts wants a load of clean yellow peas to make flour out of... payment terms are 30% down by credit card balance held in escrow by lawyer of our choosing


Yes there's risk but you can't be scared of dealing with other cultures and countries... I guess being an immigrant helps


And no it isn't for everyone that's for sure