AGT reds AOG contracts

[iceman]

Anyone heard anything about these things?

If you have a contact with the spreads locked and you're gonna deliver anything less than a #2 against it they are giving you a take it or leave offer and saying the contract spreads no longer apply.

Such a ethnic industry we have

Iceman over & out

[farmaholic]

We delivered some peas to a processor today and the Receiver, who is more than a yard-ape, said he heard "rumours" India is reneging on some high priced lentil contracts.

Hearsay?

[fjlip]

They grew LOTS of their own, makes sense, just like CHINA, "I don't like the agreed to price!"

[Cattleman]

The ethnic groups are good for pulse demand.....

[iceman]

I'm sure the thin one will be on BNN shortly telling talking up his share price. Even though he keeps diluting the float buying white elephants across the prairies.

Iceman out

[BreadWinner]

As far as I know unless the discounts for lower grades are written in the contract you are SOL if it doesn't meet the right grade. These are PRODUCTION contracts for 2 or better lentils if you can't produce 2 or better why should the buyer be on the hook to buy your garbage. WHY OH WHY are people so surprised when these things happen. We only contract canola and only canola before we get it in the bin, any other commodity is just a guess on what grade you will get. If you contract a 2 you get a 1 if you contract a 1 you usually get feed. Contracts are written by the buyer not the seller.

[iceman]

As far as I know unless the discounts for lower grades are written in the contract you are SOL if it doesn't meet the right grade. These are PRODUCTION contracts for 2 or better lentils if you can't produce 2 or better why should the buyer be on the hook to buy your garbage. WHY OH WHY are people so surprised when these things happen. We only contract canola and only canola before we get it in the bin, any other commodity is just a guess on what grade you will get. If you contract a 2 you get a 1 if you contract a 1 you usually get feed. Contracts are written by the buyer not the seller.

They are AOG contracts with the spreads locked in ie 2 cent discount for a x3. They are trying to use another cause in the contract to get out of them.

But yes no one should be surprised these things happen.

Iceman out

[farmaholic]

WHAT? I thought I was the only Producer who didn't like contracting grain not harvested and of unknown quality? Let's face it....some crops are less risky than others for this practice!

[sumdumguy]

I call BS. The phone calls from India have never been more plentiful. 3-4 before noon every day. Reports I have gotten says not too many lentils around Rosetown/Kindersley and around Regina and all the way South of Plentywood, as many fields still laying buried in weeds as are taken off. Lots of 12 bushel yields. The big boys are gonna be short just a tad. There is no way they would be writing 45 cent/lb contracts in the spring with growers and not be pre-selling on the other side. If you keep selling something you don't have, eventually it will catch up, but that's the game they like. Been there-seen that play flop a few times before. Think Sumdum is wrong? Maybe so.

[farmaholic]

Just sayin sumdumguy. Those calls actually people looking to buy or inquiring about the crop quantity and quality.

I saw some lentils in the fields today that would hardly seem worth the effort of harvesting. You can tell by the shade of brown they are(sick for a long time) and the fact they look pasted to the ground. Kinda sad.

I get what you're saying sumdum. Even with the huge increase in lentil acreage you have to wonder how much and what quality will be available.

All that being said I still wouldn't doubt some "presold" production contracts will have the international buyers backing out.

Just my opinion

[sumdumguy]

They are buyers Farma from good companies, not Lookie Lous.

Gotta wonder how much Crop Insurance is on the hook for. The coverage was pretty high and as you say a lot of those fields still standing aren't going to yield much even if you could sc**** them off the ground. Nice #1's and 2's will be worth the price of a good lock.

[Rareearth]

Won't those producers who left crop in the field to deteriorate be prorated for poor farming practices?
Once the crop is sprayed or desiccated it should be harvested 14 days later, when it's ready to harvest. Insurance companies are very quick and happy to take premium, in claims situations their job turns to limit the liability, (hail insurance - depends on the year?).

[sumdumguy]

The other day, we stopped at a standing Canola field on 33 highway just east of Regina. It is 90% shelled out. He won't need to seed next year.