36 ships

[farming101]

are waiting or loading on the West Coast in week 14.
8 more expected by the 11th.
Better lower the price of grains some more. Demand is drying up!

http://quorumcorp.net/Downloads/WeeklyReports/GMPGOCWeek201813.pdf http://quorumcorp.net/Downloads/WeeklyReports/GMPGOCWeek201813.pdf

[bucket]

This surprises people.....the railways haven't moved a million tonnes in a week this crop year....they will be lucky to move 30 million tonnes ...

I guess CP broke a record but put it in perspective of crop size. ..not sure that's something to be boasting about. ...

[ajl]

Reality is that not all off the 36 ships have a contract right now but are hanging out in the hopes that they will get a contract soon. Likely an indication of the oversupply of shipping available more than anything else. Lots of floating storage available if product can make it to the coast.

[Oliver88]

Record oil shipments by rail this past year and also the current year it sounds like.

Wheat prices seem to be staying flat to moving up slightly.

[Agvocate]

Just a thought, but it might be possible that the ships stacking up had something to do with the delayed harvest and battling moisture and quality? Sales are made long before harvest, September rolls around and rain and snow hit western Canada for 6 weeks. Once we get back to the field everyone panics and takes off high moisture grain because we are against the clock. takes time to dry, takes time to blend quality and ships start to pile up. In the short term it creates spot premiums in ares where harvest is done and of sound quality to help fill sales. Once everything is done in November, the September and October contracts have to come in and there is more than needed short term. Nearby prices fall. Keeping rail in sequence with the ships probably becomes a challenge. As for floating storage, that is what it is, but the cost depends on demurrage rates. Anything I read suggests they are escalating, so it becomes very uneconomical to just float off the coast of vancouver half full.

[bucket]

Just a thought, but it might be possible that the ships stacking up had something to do with the delayed harvest and battling moisture and quality? Sales are made long before harvest, September rolls around and rain and snow hit western Canada for 6 weeks. Once we get back to the field everyone panics and takes off high moisture grain because we are against the clock. takes time to dry, takes time to blend quality and ships start to pile up. In the short term it creates spot premiums in ares where harvest is done and of sound quality to help fill sales. Once everything is done in November, the September and October contracts have to come in and there is more than needed short term. Nearby prices fall. Keeping rail in sequence with the ships probably becomes a challenge. As for floating storage, that is what it is, but the cost depends on demurrage rates. Anything I read suggests they are escalating, so it becomes very uneconomical to just float off the coast of vancouver half full.

Pretty simple to solve ...just put a premium on dry grain....

The premium on 5cwad was on grain sitting in bins before September. ....

You want to load boats with empty ports....better premium up or the demurrage will continue....

[Agvocate]

Pretty simple to solve ...just put a premium on dry grain....

The premium on 5cwad was on grain sitting in bins before September. ....

You want to load boats with empty ports....better premium up or the demurrage will continue....

It is, if you can find what you have sold in the areas that have good quality out of the field. The rail system is designed to move from the entire prairies though. If 2/3 can't ship there is only so much you can pull from the other 1/3 in a short period of time. I did get emails looking for dry/sound quality above posted bids though. So there was some of that going on. Also have been told the fact we aren't discounting is your premium.... Although that could be argued to be factual, might not have been the best tactic if you want/need immediate delivery.

[bucket]

It is, if you can find what you have sold in the areas that have good quality out of the field. The rail system is designed to move from the entire prairies though. If 2/3 can't ship there is only so much you can pull from the other 1/3 in a short period of time. I did get emails looking for dry/sound quality above posted bids though. So there was some of that going on. Also have been told the fact we aren't discounting is your premium.... Although that could be argued to be factual, might not have been the best tactic if you want/need immediate delivery.

Fair comments ...the grain cos can pay demurrage then....**** them if they want good quality grain below the cost of production. ...and they can start laying off staff while JGL gets trucks to move grain to the end users.....