Wheat contract real life me.

[malleefarmer]

FYI contract issues and rigmarole in aust.

240 tonne of wheat contracted into a packer. Or container exporter bound for se Asia.

Delivery dec/jan which means last half dec first half jan. A contract that states a month is those 4 weeks.

Anyway I digressed. Rang packer 2nd jan when my wheat shifting, later in month.

Checked shipping stem had a vessel unknown cargo for the buyer.

Rang broker and contract amended with extended delivery.

Common to give buyers two weeks extra but noted in a GTA contract.

Got to 23 rang packer again not buyer, shipping delays sorry.

Rang broker, ok new amended contract with $2.50 carry delivery feb.

Rang packer today Monday morning, container issues likely won’t get loaded till March even late March.

Checked shipping slots company has two vessels coming in.

But asked broker checked with buyer one vessel lentils peas other some “doubt” about.

All this is in public record. They bid for shipping slots.

So contract has been amended twice the ball is then In growers court, two amendments you can walk away, walk away with wash out, or do new contract with extra carry. Once you sign third amendment word it carefully so you can walk away Scott free if delivery is post phoned. If both buyer and seller signs gta contract it’s binding.

My preferred option is to walk away. Bulk shipping container shipping is in disarray cost of containers gone up by 30% last 5 weeks dunno about Baltic dry index. Didn’t realize buyers bud for containers just don’t wander in and say I will have 200 containers.

So a snap shot long winded factual story of grain ma4keting in oz.

GTA grain trade Australia. All rules etc sorted when changing from s8ngle desk to open market. Still a framework we didn’t wanna helter skelta free marketing.

Ps buyer saying oh not our fault shipping is a shemozzle at moment and containers impossible to get, cry me a river don’t give a rats toss bag when we have production issues and can’t fill contracts.

Should add at a guess might be 60 70 growers with problem thinking I’m first to become concerned, often first few guys buyers will say walk away, but 5hen when all try gets a bit sticky pays to be in front of cue.

PS hope you guys ain’t naive to think “we’re not gonna have shipping dramas”........it’s world wide all commodities.

Sorry for the novel but change from covid climate or trumpy.

Just to reinterate contracts in buyers favour for say 10 weeks then pendulum swings.

Will let ya know 2hat pans out if anyone is interested.

Will tell by responses.

[LEP]

FYI contract issues and rigmarole in aust.

240 tonne of wheat contracted into a packer. Or container exporter bound for se Asia.

Delivery dec/jan which means last half dec first half jan. A contract that states a month is those 4 weeks.

Anyway I digressed. Rang packer 2nd jan when my wheat shifting, later in month.

Checked shipping stem had a vessel unknown cargo for the buyer.

Rang broker and contract amended with extended delivery.

Common to give buyers two weeks extra but noted in a GTA contract.

Got to 23 rang packer again not buyer, shipping delays sorry.

Rang broker, ok new amended contract with $2.50 carry delivery feb.

Rang packer today Monday morning, container issues likely won’t get loaded till March even late March.

Checked shipping slots company has two vessels coming in.

But asked broker checked with buyer one vessel lentils peas other some “doubt” about.

All this is in public record. They bid for shipping slots.

So contract has been amended twice the ball is then In growers court, two amendments you can walk away, walk away with wash out, or do new contract with extra carry. Once you sign third amendment word it carefully so you can walk away Scott free if delivery is post phoned. If both buyer and seller signs gta contract it’s binding.

My preferred option is to walk away. Bulk shipping container shipping is in disarray cost of containers gone up by 30% last 5 weeks dunno about Baltic dry index. Didn’t realize buyers bud for containers just don’t wander in and say I will have 200 containers.

So a snap shot long winded factual story of grain ma4keting in oz.

GTA grain trade Australia. All rules etc sorted when changing from s8ngle desk to open market. Still a framework we didn’t wanna helter skelta free marketing.

Ps buyer saying oh not our fault shipping is a shemozzle at moment and containers impossible to get, cry me a river don’t give a rats toss bag when we have production issues and can’t fill contracts.

Should add at a guess might be 60 70 growers with problem thinking I’m first to become concerned, often first few guys buyers will say walk away, but 5hen when all try gets a bit sticky pays to be in front of cue.

PS hope you guys ain’t naive to think “we’re not gonna have shipping dramas”........it’s world wide all commodities.

Sorry for the novel but change from covid climate or trumpy.

Just to reinterate contracts in buyers favour for say 10 weeks then pendulum swings.

Will let ya know 2hat pans out if anyone is interested.

Will tell by responses.

I like how terms change as contract gets delayed. It would be an attractive option to have here. Price should have risen in the meantime giving you good options. Can you cancel the contract and sell into the bulk market? Or is it a different delivery point to sell into the bulk market?

In Canada they don’t have to pay you carry until 90 days I believe. Definitely won’t wash it.

[tubs]

When delivery is delayed we don't get paid carrying charges, a grain company get basicly 3 extra months to take delivery with no compensation to farmer the only thing we can do is put that company in the penalty box and don't deal with them.

[malleefarmer]

Cancelled contract is just that.

Sell we’re ya want.

Same company in I think nov had wheat contracted nov/dec wheat delivery.

Called growers before time offering $6 above contract for immediate delivery a 3 day window.

Short on the vessel.

Tough gig selling grain getting it right in oz.

Current wheat barley market flat almost devoid of activity despite rallies and falls on cbot.

Range about $10 last 3 weeks. Quiet as a coffin.

[ajl]

Your now getting a taste of the normal run around on grain shipping here in western canuckistan. Now we have had a week of -40 so that will cause a 3 week delay in shipping around here. January was nice and I was hoping to move stuff in Jan but no dice. Was glad not to have to do it last week but hopefully it will go later this week as the temp move back into a sane region.

[farming101]

Container problem is apparently ongoing here in Canada.

The game is to get the container back to China as quick as possible. No time to take it somewhere and load it up with grain. Even if the grain is already at the stuffer at the port.

So load up the container carrier with empty containers and high tail it back to China. Pays better

[woodland]

Hope it all works out for you Mallee.

Keep us posted as to how it turns out or pm me if you’d prefer. Basically our bins are empty except for some seed getting cleaned this week, a few loads of barley to find a home for, and the oats we’re feeding. It wasn’t any fun moving the canola last week at -40 but it’s on a train headed to the coast and no longer my concern which is nice. We’ve never had everything sold this early ................. not sure if it’s the right move or not. Lots of neighbours are cleaned out too.

Your rules sound much more organized than our chaos over here.

Good luck🍀

[woodland]

P.S. A marketing thread............. nice to see one of those occasionally. 👍

[dalek]

Container problem is apparently ongoing here in Canada.

The game is to get the container back to China as quick as possible. No time to take it somewhere and load it up with grain. Even if the grain is already at the stuffer at the port.

So load up the container carrier with empty containers and high tail it back to China. Pays better

Was talking to one of my equipment dealers last week, they ordered a couple containers of compact tractors, I think these particular ones come from Korea. New surcharge on containers that he’s never had to pay before, the claim is there’s such a balance of trade issue that all the containers are sitting empty in North America with nothing being shipped back so before he can even finalize his order for the two containers he has to pay a surcharge to send two empty containers to Korea to guarantee they’ll get some in return

[mcfarms]

Was talking to one of my equipment dealers last week, they ordered a couple containers of compact tractors, I think these particular ones come from Korea. New surcharge on containers that he’s never had to pay before, the claim is there’s such a balance of trade issue that all the containers are sitting empty in North America with nothing being shipped back so before he can even finalize his order for the two containers he has to pay a surcharge to send two empty containers to Korea to guarantee they’ll get some in return

He is right but he is wrong the surcharge would be to keep that container away from China who have been sucking up every container it can get. Also causing issue with getting our grains to end users/buyers in asia.
IMO will result in higher east bound freight costs for crops such as Peas , lentils, malt etc. had one pea contract delivery delayed due to this now as they look to switch what was to be a container shipment to a bulk shipment.


https://financialpost.com/commodities/agriculture/the-global-food-trade-has-been-upended-by-a-container-crisis https://financialpost.com/commodities/agriculture/the-global-food-trade-has-been-upended-by-a-container-crisis

[blackpowder]

Ya, I'm getting a bad feeling about my specialty greens. Thinking I missed the boat so to speak.

[malleefarmer]

Contracted wheat shifting next via bulk vessel.

Remaining wheat also next week as well.

Might as well tell ya the remains I’ve had on a offer board via my broker. Buyers check offer board daily. Offers quoted mine was $300 ex farm. Low protien wheat.

Broker rang this morning said two buyers contacted them. One on$292 other $289. Said sorry no deal.

Rang back a bit later said another buyer staggered delivery over 3 months $302 payment 30 days end of week last load.

Will ponder was all I said.

Mentioned to trucker were #hifting wheat next week. Ok he said. What about the rest ADM are offering top money today.

Bugger me dead broker rings right on contract timecdeath knock, ADM will take your wheat next week want it all in 10 days. $300 and the clincher maybe 2 day payment from last load.

Jumped the gun maybe done dusted and wheat market ain’t gonna run away on topside in oz domestically due to supplies.

Did ask broker hypothetically if futures rise say 70 80 cents a bushel cbot what effect on domestic price here said maybe a $5 rise if that basis just shit. Whereas if I lived in western Canada with unsold wheat probably no brainer to sit. Barley market here cooled dramatically last 2 weeks

[malleefarmer]

Worded that wrong, the clincher maybe was the 2 day payment

[Old Cowzilla]

Anybody know what % of containers go back empty on a normal basis. I have been to city to pick up old containers people buy for storage. Some are like brand new and I can't figure out why they have been decommissioned .

[blackpowder]

Good question. At one time it was cheaper to use once than ship back.