Grain buyer competition

[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.

[farmaholic]

After a while the excuses and blame game from the cos blaming everything on the RRs gets tiring and old! Figure it out! If they contracted grain for a specific delivery period they have to do what it takes so the current and overdue contracts can be delivered.

What happens in the "real world" when contract obligations aren't met? Not like the free ****ing ride the RRs and graincos are getting in the Ag Industry! And then they have the nerve to pass down any penalties and demurrage to the very people who are most affected by "their" poor planning or incompetancy in the first place.

As long as the financial penalties and pain that should be incurred and felt by the offenders can be passed on to someone else don't expect much to change.

And expecting morals and conscience to have any bearing is laughable!

[blackpowder]

If you dont want govts to screw it up. Ultimately the frieght rates need to go high enough.
The fact that we are producing a raw commodity is not the rrs problem.
Joe Kennedys quote on farming still true.
Govt only a referee not a subsidizer.

We sat on our hands for 3 generations in this industry and country.
Multiple line right of ways to the Pacific, the Colombia, or Mississippi.
Until then, grow less wheat I guess.

[bucket]

A regulator for contracts is required....not just for the farmer but the graincos as well.

Is it right for graincos to load in 24 hours and then have the cars sit for 4 days?

[malleefarmer]

hmmm not sure guys elevator prices here vary about 15 to 20 bucks from top to bottom on any given day wheat. And packer/containerization another 15 plus on top again sometimes more.