Line companies canceling ships ?

[furrowtickler]

Was told that a few companies have actually canceled ships already . Anyone confirm ?
If so what penalties are there in situations like that , or do they carry insurance to back out of orders ?
Be interesting to know as farmers are facing massive buyouts

[bucket]

Cancelling ships???? Watcha ya talking about Willis????

No one is to know that or why any ship shows up on the west coast.

[agstar77]

Those that pre sold and cannot deliver will probably pay for this. The rest of us will pay too. The JRs of the world won't suffer.

[furrowtickler]

Cancelling ships???? Watcha ya talking about Willis????

No one is to know that or why any ship shows up on the west coast.

[blackpowder]

Anyone with hard info welcome to correct me. As wheat and canola have futures contracts I'm assuming both sides of any transaction covered off. Thats your insurance. There is payment insurance once something real changes hands.
Except for contract fees and penalties I suppose.
Act of God's on specialties exist because there are no futures contracts. Don't worry we pay for those.
Ships are just super bs. Destinations change multiple times while on the water even once loaded.
We've had shortages before.

[furrowtickler]

So are farmers truly liable for the spread in a buy out situation then ?

Contract at say $15 , canola at time of buy out is $20
Is the farmer really on the hook for the $5 ?
Is what it is , just curious cause many will be

[Partners]

So are farmers truly liable for the spread in a buy out situation then ?

Contract at say $15 , canola at time of buy out is $20
Is the farmer really on the hook for the $5 ?
Is what it is , just curious cause many will be

Was told price difference plus 50 cents a bushel for paper work..
Both viterra and RP said they would assess at harvest time.
Can't let farmers pay it all so must be office meetings going on..
Viterra would roll some contracts to next yr .

[Herc]

Heard one elevator saying they don’t care what crop insurance says. They still want their bushels on act of god contracts. Could get interesting....

[blackpowder]

So are farmers truly liable for the spread in a buy out situation then ?

Contract at say $15 , canola at time of buy out is $20
Is the farmer really on the hook for the $5 ?
Is what it is , just curious cause many will be

Based on my enquires, varies with company. Local here is that days posted minus your contract.
Unpriced basis contracts not too bad.
Some have fees over that which are quite variable. One I know rather onerous.

[Blaithin]

Viterra would roll some contracts to next yr .

I’ve heard of some guys flooded out last year that weren’t allowed to buy out, had to roll to this year. Now they’re droughted out.

So.....??!

[Sodbuster]

No matter how you cut it, roll or buyout your contract the producer will be responsible for the difference between the futures month and contracted price. What ever fees or penalties will be added on top of that, not many other options if your contract is tied to the futures market.

Barley contracts could be interesting, far as I know I don’t think that they are tied to futures.

[Old Cowzilla]

Heard one elevator saying they don’t care what crop insurance says. They still want their bushels on act of god contracts. Could get interesting....

You wouldn't think a act of god contract was worth the paper it was written on if that was the case or ? I think a lot decisions won't be made till after combines get rolling across all of western Canada.