It’s interesting and conveys a message that seems believable to growers, as to sell now or take your chances.
All grain companies and crushers buy not only for spot delivery but for future delivery months as well. When the message is “we are full†, “capacity is booked for his monthâ€, etc. These are talking points to motivate growers to sell for cash flow to pay bills or fear of prices dropping, etc
The true measure is:
- are grain companies taking grain deliveries for the contracted month?
- are they pulling contracts in early, ( many reasons they can give for this)?
- or are the contract months full ( many, many excuses for this), they cannot take delivery set out in the contract for the month designated. Companies don’t profit from just the grain handling, or sales margins, but by CONTROL ( logistics, forward grain delivery/ purchase contracts, this squeezes the competition ).
- are the grain companies behind on the contracts, allowing grower deliveries?
- if they are, and they have been flat out, busies and best year ever, and they can’t take delivery this is wrong! This should be policed as it limits and sends wrong messages to the farmers. They are forcing farmers to build storage for the grain exporter at zero cost to the grain company ( this is pat of what Bucket talks about)
So the question is are the exporters:
1. Behind on accepting contract deliveries?
2. On time
3. Behind
The cold weather, snow. avalanches, union strikes, etc seem to have disappeared this year.
I here some terminals are booked, full, and are way behind on old contracts.
This also tells me growers only have bin bottoms left to sell. Farmers won’t sell any more that correct, they ( unlike grain exporters) don’t want to over sell, they just want to deliver what’s contracted, to verify what’s left.
Farmers have likely sold 85 % or more at this point, all that’s left are the bin bottoms. The exporters have future contracts and deliveries for all months including May, June, July maybe at 20% capacity?
All grain companies and crushers buy not only for spot delivery but for future delivery months as well. When the message is “we are full†, “capacity is booked for his monthâ€, etc. These are talking points to motivate growers to sell for cash flow to pay bills or fear of prices dropping, etc
The true measure is:
- are grain companies taking grain deliveries for the contracted month?
- are they pulling contracts in early, ( many reasons they can give for this)?
- or are the contract months full ( many, many excuses for this), they cannot take delivery set out in the contract for the month designated. Companies don’t profit from just the grain handling, or sales margins, but by CONTROL ( logistics, forward grain delivery/ purchase contracts, this squeezes the competition ).
- are the grain companies behind on the contracts, allowing grower deliveries?
- if they are, and they have been flat out, busies and best year ever, and they can’t take delivery this is wrong! This should be policed as it limits and sends wrong messages to the farmers. They are forcing farmers to build storage for the grain exporter at zero cost to the grain company ( this is pat of what Bucket talks about)
So the question is are the exporters:
1. Behind on accepting contract deliveries?
2. On time
3. Behind
The cold weather, snow. avalanches, union strikes, etc seem to have disappeared this year.
I here some terminals are booked, full, and are way behind on old contracts.
This also tells me growers only have bin bottoms left to sell. Farmers won’t sell any more that correct, they ( unlike grain exporters) don’t want to over sell, they just want to deliver what’s contracted, to verify what’s left.
Farmers have likely sold 85 % or more at this point, all that’s left are the bin bottoms. The exporters have future contracts and deliveries for all months including May, June, July maybe at 20% capacity?
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