Useless Canadian Grain companies

[fjlip]

What farmers need is some sort of coop that they own. That way with they're own company they can retain the profits instead of it going to corporate shareholders.

That would be great.

Oh and BTW every market analyst knows its true, farmers don't market anything. The grain market was never set up for farmers, it is for grain companies. Reality check time of just how unimportant you are in the whole market scheme.

Peasants to feed the billionaires...

[farmaholic]

What farmers need is some sort of coop that they own. That way with they're own company they can retain the profits instead of it going to corporate shareholders.

That would be great.

Oh and BTW every market analyst knows its true, farmers don't market anything. The grain market was never set up for farmers, it is for grain companies. Reality check time of just how unimportant you are in the whole market scheme.

If every non-subsistence farmer wwouldn'tgrow a crop you'd find out just how ****ing important they are in the scheme of things....you bet, reality check time. Ya I know, dream on!

[Kinger]

Grain markets arn't some secret society you have to get into to use.

In the US roughly 70% of farmers are using some kind of grain marketing tool on there contracts.

In Canadian that number is under 1%.

Most graincos or brokers offer options or other tools that anyone can use.

Lots of brokers and graincos have info nights where you can learn about these things and start trying to use them.

[bucket]

For two commodities like corn and soybeans that don't have eight different classes and protein spreads to worry about .....you are right using futures for soybeans and corn probably makes sense....


Fora thinly traded commodity like canola and now no wheat durum or barley markets in Canada it's not the case. ....even American farmers talk about mpls as one to stay away from....

Now start talking about peas lentils flax and a commodity exchange. .....where are they? Peas and flax disappeared what 20 years ago.....


It's all noise.....

[Kinger]

Yeah crops that don't have exchanges you can't do anything with.

If your worried about how thinly traded certain ones are. Like Minneapolis Wheat. Certain brokers offer guaranteed liquidity in there options. It will cost more but they will take the risk if they can't find someone to make the other side of your trade.

I wish there was exchanges for more commodities.

Flax 1.1 million acres
Canola 22.8 million acres

I understand why though.

[farmaholic]

Most graincos or brokers offer options or other tools that anyone can use.

Lots of brokers and graincos have info nights where you can learn about these things and start trying to use them.

....No Thank You. To me, if the GrainCo is encouraging you to sell your grain if you have the ability to hold it(not worried about storage risk or don't need cash flow) and take a futures position or buy options, that is self serving!

[bucket]

Why not a contract signed in February for September delivery with protein spreads. ....

And with a guaranteed delivery....

Geez why think a grain Co would take the risk.....since my risk is gone once in the hopper. ....

[Kinger]

....No Thank You. To me, if the GrainCo is encouraging you to sell your grain if you have the ability to hold it(not worried about storage risk or don't need cash flow) and take a futures position or buy options, that is self serving!

How?

Yeah they make some money from selling the option. So does a broker. Grainco's i've found have been better to deal with for options. Cost is very similar between them both.

Why shouldn't they offer them? It's not hurting anyone and is another tool we can use to maximize profits/reduce risk.

[farmaholic]

How?

Yeah they make some money from selling the option. So does a broker. Grainco's i've found have been better to deal with for options. Cost is very similar between them both.

Why shouldn't they offer them? It's not hurting anyone and is another tool we can use to maximize profits/reduce risk.

Ok then.... every farmer just blow out your grain and hope the prices go up.... Come on Kinger...

[mcfarms]

would a person not be wiser to do a futures only into Dec 18 carry the wheat forward use the carry and the protein spread back to a 13.5 contract spec to pay for the additional fertilizer bump needed to push that 18 crop protein up to where you have a ability to blend at those spreads? ( I did a quick napkin math and I think .90 some cents a bushel in carry and protein from sf3's 12.5 to 13.5 contract spec, using the 60 cents stated for the spread as they vary from company to company ) As a little exercise if you have low protein wheat this year do your bushels multiple it by the spread and carry and take a look at how much n that would buy you to add to next years wheat crop it might surprise you)

Ive done well in the past carrying wheat , seems next years grade determinants are always way different than this years and blending seems to work best when you are not trying to flog the same stuff everyone in the country ( planet) is doing. this year low protein wheat is everywhere world wide . Only stuff that will find a home will be the stuff they need to blend lower quality up. As I had great protein last year I blended the previous years carry over up and did well retained a couple bins of high protein just in case and it turns out my protein is all above 13.5 so ill make a decision on whether to keep some again based on spreads in the winter and spring.

Now all this only works if you can cash flow until these sales. Wont tell you if I can or cant just saying take a look at the options As an aside you'd find basis levels may be wide now for that dec 18 but normally I get a chance a a decent basis in the spring.

[MBgrower]

For two commodities like corn and soybeans that don't have eight different classes and protein spreads to worry about .....you are right using futures for soybeans and corn probably makes sense....


Fora thinly traded commodity like canola and now no wheat durum or barley markets in Canada it's not the case. ....even American farmers talk about mpls as one to stay away from....

Now start talking about peas lentils flax and a commodity exchange. .....where are they? Peas and flax disappeared what 20 years ago.....


It's all noise.....

often theres more risk in wheat basis than futures. lets say you presell 1hrs135 new crop,and then harvest 3hrs12.5 with 3% fusarium some midge damage, etc. your original basis could end up getting adjusted by more than the change in futures. how do you hedge against basis change? cash index futures don't trade anymore. furthermore, had you not presold that grain, chances are you could sell it direct to a feed user for more than the grainco ends up paying you for that 3hrs wheat. kinger sounds like one of those grainco guys who don't understand the complexities of marketing and hedging from the production side.

[Guest]

often theres more risk in wheat basis than futures. lets say you presell 1hrs135 new crop,and then harvest 3hrs12.5 with 3% fusarium some midge damage, etc. your original basis could end up getting adjusted by more than the change in futures. how do you hedge against basis change? cash index futures don't trade anymore. furthermore, had you not presold that grain, chances are you could sell it direct to a feed user for more than the grainco ends up paying you for that 3hrs wheat. kinger sounds like one of those grainco guys who don't understand the complexities of marketing and hedging from the production side.

Or the insane risk we face every year