This peas and lentil thing is upsetting. WTF will farmers grow in 2018. Canola at $8

[sumdumguy]

We have seen over supply many times since 1980 and really poor prices like 8 1/2 cents/pound for Lairds and 9 cent Canary. If you think the price is too low, just lock the bins. It may take awhile to eat our way out of this downturn, but I am soaking chickpeas and lentils as we speak. In Maui lentils mixed with pineapple and cilantro and main menu items made with pulses peaked my curiosity. Low prices decrease acres and the cycle rolls on.

[sumdumguy]

Sure hope all these pea fractionation plants get built

Yep Farming, it is amazing to see the number of big new plants going up. You would think there is money in processing. Dave, give us the scoop. I have my experience and opinions but it is better to hear it from the new guys.

[chuckChuck]

I am wondering what you expect governments and commodity groups to do about over supplied markets and falling prices?

Most of you guys hate government intervention in the market so what do you suggest they do to resolve the declining profits in a free market system?

Are you expecting them to bail you out? Put in price controls on inputs and machinery? Pay farmers the cost production? What do you want?

The grain companies and input suppliers are just doing what their shareholders expect them to do, which is make lots of profit.

[blackpowder]

Sad fact is I just spent 5 mins reading through this. Bright spot hello sheepwheat.

[bucket]

Everyone talks about signing good prices for grain they don't have ...let's say this drought took hold this past year and you were holding a 9 dollar pea contract with no crop and the price went to 15....


Or you had a 9 dollar contract and the price drops and the grain cos won't take delivery.....


Net result is shit rolls downhill...farmers have zero people in their corner....zero...

Bombardier....AGT. ...manufacturers. ...all have government backing.....

We have nothing....

[vvalk]

A bunch of millionaire farmers complaining about grain prices tailing off. 'Rich', don't you think? Why not just get bigger? Buy more iron? That'll cure the blues of these "awful" prices... Hurry, buy that cheap N, order your canola seed, defer those sales, incorporate to save taxes, drain more land, push more bush, produce more. Life is all about the dollar! Wait, doesn't it take dollars to do all those things? Wait, where did that money come from? Grain sales? But I thought they were too low? Did the money come from somewhere else then? I often wonder.

If you can afford any of the above, grain prices are just fine. Be happy with what you have for once. I wish I were in that position, but I am still happy.

First world problems people! This is exactly why I temporarily leave this site once in a while. I feel like I am on a different planet farming.

Sometimes a reality check is needed. If I can live with these grain prices, y'all can too...

This may come as a surprise to many people but some people actually make a lot of money from farming. No it didn’t come from daddy or grandpa or somewhere else. I see it all the time neighbours who literally gross less the the other neighbour nets. And there is always a reason why they don’t make as much.

[wmoebis]

Everyone talks about signing good prices for grain they don't have ...let's say this drought took hold this past year and you were holding a 9 dollar pea contract with no crop and the price went to 15....


Or you had a 9 dollar contract and the price drops and the grain cos won't take delivery.....


Net result is shit rolls downhill...farmers have zero people in their corner....zero...

Bombardier....AGT. ...manufacturers. ...all have government backing.....

We have nothing....

I don't understand markets so help me. If there was $9 markets why didn't grain Co pre sell the whole crop and be able to offer that price all the way through. That seems to be the recomendation all experts are telling farmers they should have done. Same with wheat back in July.

[agstar77]

Maybe it will bring some reality to land values. All I have heard over the last number of years is how much growers have made on lentils. Well nothing lasts forever.

[bucket]

Wmoebis

Grain cos would never take that position....they can't afford it that's why they lay the risk onto primary producers....they can hold farmers hostage for their grain needs...

[sumdumguy]

I don't understand markets so help me. If there was $9 markets why didn't grain Co pre sell the whole crop and be able to offer that price all the way through. That seems to be the recomendation all experts are telling farmers they should have done. Same with wheat back in July.

How do you know that they didn't hedge this crop? Maybe they did but the profits aren't our profits.

[macdon02]

Because if they are wrong wmoebis, they are done. It's the difference between speculating and hedging. So they simply offset the producers sales with futures contract. We don't want them going broke as much as we might wish some days .... The office is dealing with currency, basis and their actual sale as different pricing components. So there's still opportunity to get blitzed. Especially if they make fwd sales on say something like 14 pro back in July. As soon as the sale gets made on their end the hedge is lifted..... So they better have some ****ing 14 or they need to flush it out with premiums or discounts. I suspect by Feb or march they'll start paying for 14 pro as a "premium" because they'll have no other choice but take the gas.

[bucket]

Because if they are wrong wmoebis, they are done. It's the difference between speculating and hedging. So they simply offset the producers sales with futures contract. We don't want them going broke as much as we might wish some days .... The office is dealing with currency, basis and their actual sale as different pricing components. So there's still opportunity to get blitzed. Especially if they make fwd sales on say something like 14 pro back in July. As soon as the sale gets made on their end the hedge is lifted..... So they better have some ****ing 14 or they need to flush it out with premiums or discounts. I suspect by Feb or march they'll start paying for 14 pro as a "premium" because they'll have no other choice but take the gas.

Your first sentence is why many farmers don't sign forward contracts as well....

No futures for peas lentils flax wheat durum mustard in Canada. ...where would the grain cos lay off that risk? To the primary producer by controlling delivery.....