Grain buyer competition

[farming101]

With the continued announcements of more new elevators it is surprising that none of the existing companies try very hard to maintain their customer base
Of course I suppose that most think the rougher land farmed around here should be turned into one big ducks unlimited/bison refuge. That could be the reason for never seeing more than one visit a year to the farm by only 2 of the companies active in the area.
One major company doesn't even offer any online daily cash bids. I don't understand their thinking

It will be interesting to watch as the grain company landscape is changing rapidly and the pie is being divided into new shapes

[bucket]

Good topic.

G3 with their loop tracks at both ends may have an advantage but their facility locations are puzzling.


There are still a few lines that have no competition....that is still problematic. Not sure why highways does not get involved to prevent monopolistic activities that destroy roads.

All graincos should have instant pricing apps....would save the farmer and marketing reps time.

And don't forget the one cog in the process that isn't changing...the railways with their 40mmt grain program while we grow 70mmt.....that keeps a lid on prices....

[farming101]

Rough figuring rail needs a 10% bump in capacity

Remember nearly all product from the canola crush is railed out

[bucket]

I have it figured by twinning the main lines they would solve the majority of the bottlenecks.

Also a great infrastructure program.

Maybe someone will build rail lines as a new competitor.

If you look at the old rail beds still in place it would be easy to rejuvenate them...there are machines that do that.

A new railway could use sidings as bypasses.....imagine that....

Did you guys know G3 has 3200 railcars?

[farmaholic]

As I've said before I am grateful I live in an area that has many terminals within reasonable driving distance....whether that competition is real or perceived its better than no options.

Same can be said for special crops buyers and processors...pretty decent options.

Ya I guess the railways are another story. Could you image what twinning one would do. Maybe the Feds and western provinces should jointly build it and charge a toll for the two railways to use it. Or is pulling over and WAITING and letting another train pass on a single lane track more efficient(sarcasm).... the ****ers would probably refuse to use it.

[grefer]

As I've said before I am grateful I live in an area that has many terminals within reasonable driving distance....whether that competition is real or perceived its better than no options.

Same can be said for special crops buyers and processors...pretty decent options.

Ya I guess the railways are another story. Could you image what twinning one would do. Maybe the Feds and western provinces should jointly build it and charge a toll for the two railways to use it. Or is pulling over and WAITING and letting another train pass on a single lane track more efficient(sarcasm).... the ****ers would probably refuse to use it.

Thanks for your posts Farmaholic. I often get a chuckle from them. As far as having more terminals that add competition I am sceptical it will have a large impact. In my area most of the major players are within an hour and after listening to farmers it sounds like same
S$$t different pile. Maybe Im just getting old.

[Guest]

Our local richardson isnt even trying this year , really puzzling ?? Local joke around here is everyone wondering if theyre still open ?? Theyve just completely drifted away ? P+H really agressive also viterra . Even local Bunge seems uninterested in buying canola

[Crazyharrows]

Hit the nail on the head there wise guy!!

[bucket]

Richardsons decided at the Friday Winnipeg tea to take a break.

[biglentil]

Our local richardson isnt even trying this year , really puzzling ?? Local joke around here is everyone wondering if theyre still open ?? Theyve just completely drifted away ? P+H really agressive also viterra . Even local Bunge seems uninterested in buying canola

Yep same with our RP.

[walterm]

There is no true completion !

They collude, manipulate the futures, and fix the basis to set the price !

What about the grading/dockage side? No 2 the same even tho only one Grading Guide to follow properly.

[Guest]

Richardsons decided at the Friday Winnipeg tea to take a break.

Break has been all fall and winter

[bucket]

Everyone here knows the railways haven't hit a million tonnes a week for months.

CP consistently is running 70 percent of their spots...shorting the elevators 1300 cars a week...you can't help but think there is some collusion going on.

It's not a competitive market.

[bucket]

I know guys that have signed contracts last November for January 2017 delivery that are not delivered yet....signing for April delivery that doesn't happen until June with no penalty to the grain company is not a working market....it works in the grainco favour....

If you don't have things current so you can have spot delivery it's not a working market. ....nor can true value be determined.

They have conditioned farmers to build storage and wait....all at farmers cost. 250000 worth of bins has to earn an extra 25000 every year over spot delivery or its not worth it.

[blackpowder]

Forgive me but. What the hell is going on out there??
Absolutely puzzling for me. For profit companies $/t. Not pursuing volume??
Here its almost opposite. Always ship in the contracted month. 8 hour unit train load may sit for 3 days before leaving but still.
Are the companies pulling from west to east first? Perhaps a few more N to S rail lines like it should of been from the start.