Nexera canola - not moving?

[dnach]

Anyone else having trouble moving Nexera Canola from 03? We have a Nov. Dec, 03 delivery contract that has not moved yet and the explaination we were told was that they are having trouble finding a boat out of Vancover. The freight rate has trippled on them and they are unwilling to move this canola as of yet. Funny when the shoe is on the other foot and the multi's don't have to obligate there side of the contract when they are faced with increased costs. If this is true and they don't resolve this soon, you will see farmers cancel their 04 contracts and the whole future of nexera canola will be left hanging. We as farmers are faced with huge increases in input costs yearly and just take it on the chin!

[Everest]

I have a Nexera contract from 2003 which has also not moved. Not one seed. I am a little miffed. My written contract did not specify a delivery period, but I was told it would be Nov-Dec. They would not provide me with a DDC clause which specified date of delivery, which is a major weakness. These production contracts are going to have to be improved considerably if that's the way the industry wants to go.

I have signed production contracts for 2004 for the new 800 series. I will treat that contract the same as the buyer (same company) of my 2003 contract treats it. In other words I will honor any obligation to the same extent that a buyer honors their obligation to me.

It's not a good situation, but at least I have a choice to take my business elsewhere if I'm disatisfied. That gives me considerable leverage, which, sadly for my milling wheat production, I don't have.

Yet.

[farmerfudd]

I think all specialties have been on hold. I've got IMC [cargill] and some juncea with similar contracts for dec. and the delivery keeps on getting pushed. I heard freight rates did jump but, but they're sure as hell not waiting off shore. I think the reason is the crushers are having such a good year on oil that they can't be convinced to do a turnaround for these small crushes.

[Everest]

I'd be interested to know how many of these contracts are simply buyer's call for delivery, and how many have a delivery time specified. It seems to me that farmers are going to have to insist on a little more specifics in the contract. Cash flow is important, as is price.

[shelka]

There are a number of Nexera contracts I'm aware of that are not moving that DID have delivery dates for the fall of 2003 ... Yes, it is now January.