where's the arbritrage

[bgmb]

If loading producer cars is so inefficient why can I get over a dollar/bu more than the local elevator price? This is the definition of arbitrage.

[bucket]

It efficient for you, not the masses.

If every tom, dick and harry was doing it, it wouldn't be so easy.

Be thankful everyone doesn't want to wear out an auger to load cars and say they are making more money.

My comments have nothing to do with my personal opinions. I am looking at the masses of farmers.

We could do what parsley suggested and all order producer cars but I would be getting a bunch of guys together to talk to my local elevator manager and cutting a deal. We will bring you in 110 producer cars and you load them, What is it going to cost?

Someone will bite eventually.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.

[bgmb]

Well I guess you can bitch about it on agriville or you can take the advantages of the opportunities that are available. I tend to lean towards #2 option.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.

[farmaholic]

bgmb. Yes, I guess you could say that is
arbitrage. But the only reason you're getting it is
because you're bypassing the gouging inland
terminals and the Canadian Grain Act is still
honoring producer car applications(for now). If it
was up to the railroads you would be out of luck, in
my opinion. So in effect, bucket is right , the
system is broken. The inefficiency would be the
RRs running around delivering and picking up and
sorting scattered cars instead of picking up 112
from one spot. It really only benefits the person
filling the car, and for now that is more than okay
with me.

[bgmb]

Frick you guys live in a dream world. Lets twin lines, get more cars, big inland storage facilities maybe legislate some private companies to do what we want. All that cause we grew a single bumper crop that won't be repeated for decades.

Talk the talk really well

[farmaholic]

bgmb. I'm supposed to be getting 18 cars for
wheat and durum. Trying to get them spotted on a
privately owned rail line(not all at once of course)
I'm not attacking you but it is hard to argue with
what I said. What I said applies to me as well as
anyone else.

[bgmb]

Farmaholic, I get that, Just bothers me a bit when some farmers think they are "entitled" to just keep doing what they have done every year and get their grain moved for a good price. Nobody can wave a magic wand and make a bumper crop disappear. We need to be willing to adapt to move this crop through any and all ways possible.

[bucket]

The potsh mines have a enough storage capacity to load a unit train every day for probably a month even when they were not producing.

There is not enough commercial grain storage, fact.

The potash mines went as long as they could without having to contact the premier, that's a long time to manage their storage until its right full.

Look at potash, look at the tank farm in Regina.

Commercial storage to absorb the problem we encounter every year because there is not enough storage here or at the coast.

Its pretty simple.

Now add up all of the new exports that are going to come on stream in the next five years.

The current system will not and can't handle it. Its a fact.

Farmers have to look at storing crop in an exportable position. Grain bins are not the long term solution. Export position, think you guys think.

Then push as much as we can in the right time of the year, but when is right with all the new exports coming on stream.

We need a new service provider and a new route.

Its that simple. We have done this same thing for as long as I can remember.

We are not getting different results.