Pull your TPA's

[GOODRUM]

Hard to figure if $10.50 is profitable if you have to sell the rest for $8.50 , 1$ profit on half and $1 loss on the other half.

[GOODRUM]

Hard to figure if $10.50 is profitable if you have to sell the rest for $8.50 , 1$ profit on half and $1 loss on the other half.
Be nicer to start with $12

[farmaholic]

What's wrong with changing our minds? The market is a moving target so why can't our expectaions change. If a production/political blip occurs somewhere in the world that provides an opportunity for higher prices should we not try and capitalize on it? Or because we signed a TPA we have no right to change our mind? Good grief! Oh yea I forgot, if we net out a nickel above COP thats good enough, so some think...

I have no target agreements signed at the moment and don't like using them or the excuse they use, I "might" miss out on something but read the posts about spot prices rallying higher than triggered TPAs. You have to wonder how much higher it could go if no one had any.

I'd bet my farm they only get triggered in a rising market. Not like, gee am I glad they triggered my TPA. The market just fell $30/tonne over the last three days...yea, right.

[bgmb]

You guy like giving grain companies free call options. Never have used one never will.

[Guest]

i agree with bucket , contracts are a way of taking all the risk . how many people do you think were on the wrong side of this durum market and had to buy their way out ? no one is talking about that ? anyone that thinks they can grow canola consistently for $10 with these inputs is a lot better farmer than me ! we are falling for their horseshit hook line and sinker. i notice no one is talking much about cop this year , thats all we heard from them last year . they know we are below our cost of production and couldnt care less! every 1/4 of canola i look across on our farm represents at least $45,000 direct inputs , think about that when you want to give it away

[Braveheart]

If your contract isn't hit the risk is the price could move lower. Target gets hit the risk of a lower price is gone, there is just the risk the price would be higher.

Use it (tpc) if you see it as a tool. If you see everyone around you as a grain thieving scoundrel you need a different brand of Kool Aid.

[farmaholic]

Better than the "Grain Co" brand of Kool Aid.

[Braveheart]

"Kool Aid" choices are?

[farmaholic]

I prefer LemonAide, keeps me bitter. The sugary Grain Co brand tastes good but not good for you. LOL

Mike's Hard...

[Braveheart]

I was expecting you to say I needed First Aid. Haha.

If someone could aid me in understanding why when the world is awash in grain and oilseed surpluses grain cos are all crooks. Yet, a year and half ago grain prices were sky high, farmers had the world by the tail and everything was rosy, rosy. No grain crooks. Do they only come out when markets fall?

[GOODRUM]

Look what happens to the prices when there uncertain of the supply, I don't think it's in our best interest to be so transparent to what we have in storage, right from the grade to the price, pretty sure there jobs are a lot easier because we are brainwashed into believing it's the way to maximize out profits.

[farmaholic]

The "take" on lower price grain hurts more(larger percentage of the value). The games(grading, TPA, book your space by contracting now, basis/futures first, production contracts without premiums/discounts written into them) I talk about are played in both high and low grain price periods. Transfer of risk. I don't like selling something I may not produce(volume and quality) without AOG clauses. I don't like signing contracts with too many unknowns, how can you commit to something you don't know...

Funny though how there is too much grain yet every tonne will find a home when it's cheap enough.

Look, it's not my goal to change your mind. Do and use whatever works for you.

[GOODRUM]

Talked with my grain guy today and he said they don't have any TPA's on the books, 9$ last week cleaned them up, there covered for now.

[hobbyfrmr]

I am following charlie and braveheart on this one. If there was the opportunity to lock in new crop canola at $10.50/bushel when a farmer was delivering old crop at 12.00/bushel. Why not figure out if its profit for your farm and sign up a % of your average production? Big farmers do this. They have big costs that need to be covered. Its good to k.ow a year ahead a person on at least have a little profit. This way you choose that price and not the victim of a
TPA that you set.

[Hopalong]

Expect we have all seen cases where growers had grain rot because of poor storage.
Know that we have had it happen on own farm.
Like pooling, how far do we go to benefit other farmers?
Target prices can help some of us with our marketing plans.