Viterra wants grain!!!

[wmoebis]

Know of a fella that took a significant chance and presold a significant portion of this years production at that amazing $9.00/bu. His only mistake was assuming because of the hot dry weather he would have decent protein so booked a generic #1 13.5. Started hauling it in, and the Px tests in the low 10s. Elevator says don't bother bringing anymore, they don't want to tie up any binspace with low protein wheat. Of course, one is not able to lock in the protein spreads at the time of the contract so by the time they get deducting their way from 13.5 to 10 or 10.5 he's hardly any better off than taking the pit price right now.

Only upside i could see is if he decided to let the contract go, and broker it out for someone else to fill who has high protein.

Blending ability on farm would help there might be some high px that would love to split some of that $9 for immediate movement. Where at asking for a friend. Lol

[Agvocate]

Know of a fella that took a significant chance and presold a significant portion of this years production at that amazing $9.00/bu. His only mistake was assuming because of the hot dry weather he would have decent protein so booked a generic #1 13.5. Started hauling it in, and the Px tests in the low 10s. Elevator says don't bother bringing anymore, they don't want to tie up any binspace with low protein wheat. Of course, one is not able to lock in the protein spreads at the time of the contract so by the time they get deducting their way from 13.5 to 10 or 10.5 he's hardly any better off than taking the pit price right now.

Only upside i could see is if he decided to let the contract go, and broker it out for someone else to fill who has high protein.

Protein spreads are at time of delivery, however you can change the protein on your contract at the posted spread to a different one prior to delivery with almost all companies. The only one I know that doesn't allow that is Viterra. For example the $9.00 contract 2 or 3 weeks ago before spreads widened out could have been changed to 11.0 pro for far less of a discount than now. Important thing to ask when forward contracting CWRS and Durum. As a grower you need to be able to manage that grade and protein spread risk and not all companies treat it the same.

[hobbyfrmr]

Maybe the grain companies are taking a page from the Ag Data companies that keep getting sold for millions and billions. Farmers are dumb enough to give/pay to give data away, maybe they will give the grain away too.
Oh right, you also get to pay for a BS prescription map based on US greenhouse research from the 40's. Ya that's value.

Worth a try.

Heck, some even might pay the trucking.

I dont think farmers are dumb in a literal sense. I do think they are "stuck" and comply with technological updates on the premise of being more productive and efficient. On the other hand I am watching industry controlling farm decisions more than ever. Its fascinating in its own way.

Technology is not all bad. I am sending this post via my cell phone while driving a 32 year old tractor with auto steer. You should hear me squeal when I have to steer a tractor with my own hands!

[tweety]

Would uninformed and naive be closer?

[Hopalong]

Single most irritating thing about wheat board was when employees and supporters inferred that farmers were too dumb to sell our production without their help.

[bucket]

What's the difference between waiting for a cwb call and your money then ...... or listening to graincos excuses as to why your contract can't be delivered because of some lame excuse now?...

[grassfarmer]

What's the difference between waiting for a cwb call and your money then ...... or listening to graincos excuses as to why your contract can't be delivered because of some lame excuse now?...

Three little letters and decades of prejudice!

[bucket]

Hey grass want a good chuckle.....where is the fat boy's pasta plant at the GTH....connect those dots....hahaha....

[Jay-mo]

To continue beating the dead horse......sold a bunch of wheat for $9/bu. back in July. That never woulda been possible with the board. To top it off, i will get a protein premium on top of that! Wooeee

[seldomseen]

To continue beating the dead horse......sold a bunch of wheat for $9/bu. back in July. That never woulda been possible with the board. To top it off, i will get a protein premium on top of that! Wooeee

That's super Jay and I notice there are opportunities ever year to make a good deal you just have to grab them when they are offered. In the days of the CWB there was nothing except depression.

[Partners]

To continue beating the dead horse......sold a bunch of wheat for $9/bu. back in July. That never woulda been possible with the board. To top it off, i will get a protein premium on top of that! Wooeee

Correct we all had the opportunity to sell wht. At a higher price.
We did some..wish we had sold more.
But every time prices go up..some expert says it will go higher just to screw with our minds.

[Oliver88]

There was quite a ramp up in prices this summer.

I thought $7 for #2, 13.0 September was decent, than $8 was great, over $8 was getting crazy when targets actually hit.
Contracted too much by the time it got to $9 which was the highest number for #2, 13.5 at the location I move most of my wheat.

It would be amazing if some of you actually waited until $9 to contract wheat and did a large % of it......although after hearing about some farmers "creative" yield numbers I'm not sure what to believe.