glencore Viterra

[gustgd]

Going to do a interview on Glencores/
acquisition of Viterra and the implications
to farmers and AG.
Thoughts??

[HappyFarmer]

I am interested to know what is going to happen to retail side of Viterra business once this goes through. I understand that Agrium will be taking over most of those assets, but would like to know the timeline of when that is going to take place.

[Ronski]

I'm much more concerned about the input
side and keeping a pretense of
competition. We can ship grain further
or find local markets/feedlots/brokers
but a choice of local retailers is
fading fast.

[wmoebis]

It is my understanding that Pioneer and Glencore will be sharing port facilities to some extent.

How are they going to handle quality control going into port? Will everything be third party inspected or who has control of quality at port?

[parsley]

Natural gas prices are set to rise, which will have
a steepening effect on the price of fertilizer. Any
studies done on projected price rises? Effect on
production? Extrapolated prices at farmgate by
2015 is ? Pars

[oneoff]

Natural gas prices are such a miniscule price of the current anhydrous ammonia price; that only a very ambitiuos accountant could make a case for much of a price increase; even if natural gas prices were to instantly double or treble.

[westsider]

Hey Parsley,
its sad but true but thats what they would say.
"um..yeah...price of natural has gone up over the last year so we are gonna have to go ahead and raise the cost of Nitrogen. so if you dont mind just going ahead and paying $850/mt for urea that would be great..yeah..." Industry spokesman.
- because right now its 600 and the gas is almost free


Ronski. Jana needs to step back and look at this thing. Now i am just a little silly farmer but to me it seems that there is going to be more fertilizer production coming on line from various companies here in north america and these companies will maybe start to get more competitive at the wholesale level. yes there will be some price collusion, but they are also going to want their plants running at as close to capacity as they can.

Why would agrium want to give up what i perceive to be a possible stranglehold on the retail side of things by going direct to growers as opposed to getting in bidding wars trying to supply independents with other companies coming online.

As far as retailers go they are the only ones that will be hurt and not the farmer. so what if the guy with the biggest house in every small town has a few rough years, farmers do.
And now these retailers dont even take positions they just wait for you to buy then go do it themselves. seems like a pretty expensive middle man at $50 -$60 per mt

[oneoff]

Did not fertilizer prices go up as natural gas prices collapsed and stayed there.

Then would fertizer prices not go down as natural gas prices recover; as indeed they will.

Report back later on that one.

[Daylate]

And back to original post, what are they doing with
the esso bulk delivery?

[gustgd]

Good point about Bulk fuel. Will have to
consider when the WCWGA makes our submission
to the competition bureau.

[hobbyfrmr]

I just realized that Glencore is the #2 oil trading company in the world.

[Burbert]

Reckon they'll do whatever they wants ta
do. Comedian competition bureau is a
spineless, useless, groupa gobermont
suckups, appointed by the current
gobermont reining over the Comedian
masses. Heil Harper!

[wilagro]

Allowing Glencore to take over any part of our grain trade was one of the more stupid moves this government of ours has ever done. This whole "behind the scene" manipulation was done with the blessing of the Harper government who continue to "sell-us-out" with every passing day.

[gustgd]

Wilagro. Why?

[wilagro]

gustgd: You ask why??? Putting that much more power in the hands of one World dominant corporation in buying and selling of grain and oilseeds allows for too much manipulation of price and supply...in other words a near monopoly which can do so at the expense of our producers.

Of course you may pooh-pooh this as alarmism...well we'll see in the next few years as to who is right.