"Contract squeeze worries farmers " is the WP headline

[blackpowder]

😆
And I wish I had been better educated when I started.
Course, too much and I either wouldn't have started or quit soon after lol.

And Blaithin, don't be too concerned about old farts.
There are some excellent articles and or books that explain the function of futures markets.
There may be 6 paper bu traded for every 1 physical. It's a zero sum game. Designed for price discovery and protection. Chaos without.
As Gco buys your bu at $7, it sells the obligation to deliver to someone else at $7 and so on and so on. Removing their price risk.
By last trading day of the futures contract, everyone is out who doesn't want to stand for delivery in Minneapolis or wherever. Rarely happens but the threat keeps the contracts alive.
You get out of your sell obligation by delivering or buying. As does everyone else the instant and at the price you do.
They hedge currency exchange risk same way.
As buying back the paper we obligate to sell often not cheap, we ' speculate ' without the bu in the bin. Pigs get slaughtered is the saying.

[Old Cowzilla]

Dammit I'm going to try filling my $12 canola contract anyway don't give a hoot what the BTOS do . Thats still better than the loads of $ 10 stuff I sold last year guess I am a glass half full kinda guy.

[the big wheel]

Lol yep. Come on a marketing forum and actually try to educate some people on how marketing works and I must work for a grain company.

I just can’t stand guys not being accountable for the decisions they made. Same as if you locked in fert for spring and the price goes up after, do you share the risk on that? Pay a little more come seeding despite the contract?

Give me a break. If you actually took some time you’d realize you actually have the opportunity to learn here but instead you just complain

If you want we could meet I could give you more than break!
Your a smartass done with smart assess benefiting off us.

You don’t fool me for a minute. Likely the guy posting on
Facebook that got called out and found out was a
Grain marketer. Your job relies on all of us buying into thinking
We need the current system we don’t it needs to be
Simplified. This reminds me of the accountants designing agristability
It’s made more for them to have work than it does to be
An effective program.
You haven’t asnswered my question why did you elevator people
Mis state last years canola crop? Every farmer in the country got screwed
And every buyer got cheap canola at our expense.
The other problem with our system is you tell me an elevator
That doesn’t preach if you don’t have a contract you won’t
Be able to sell? Why is that? The reason is they then have
Tools to make money off our need to sell at harvest and these
One sided contracts.

[dmlfarmer]

No, be on the hook for $11, buy out the $11 if you don’t deliver. Why do you have to buy out for the company too? It’s a risk for the farmer to forward sell which means it’s a risk for the company to forward sell. Why don’t they foot that risk like the farmer does?

Blaithin, You are getting hung up on grain companies role as middlemen. Consider if that buyer mr farmer sold to is a a feedmill. They expect delivery of the contracted number of bushels in a specific time period for that $11.00. If farmer does not deliver the contract they have to go to the market and purchase those bushels for the “$20.00 market price. Why should the the mill have an added $9.00 cost per bushel to meet their needs they had covered with the contract. No different for an export company. They expect delivery for the agreed upon contract and it is not the company fault if the producer defaults

The point is it is the farmer who took the risk selling something he did not have and had no guarantee to getting.

Furthermore selling physicals is not the only option farmers have to lock in price or profit

[the big wheel]

Blaithin, You are getting hung up on grain companies role as middlemen. Consider if that buyer mr farmer sold to is a a feedmill. They expect delivery of the contracted number of bushels in a specific time period for that $11.00. If farmer does not deliver the contract they have to go to the market and purchase those bushels for the “$20.00 market price. Why should the the mill have an added $9.00 cost per bushel to meet their needs they had covered with the contract. No different for an export company. They expect delivery for the agreed upon contract and it is not the company fault if the producer defaults

The point is it is the farmer who took the risk selling something he did not have and had no guarantee to getting.

Furthermore selling physicals is not the only option farmers have to lock in price or profit

Blaithlin is 1000% correct!

What a happening is grain companies are forcing us into contracts or you can’t sell
When there are more contracts the market becomes stable for buyers when
The market is stable for buyers the idea of uncertainty for them
To get product means prices get driven down.
We ve all bought into this buckshot way by people who
Are creating their own work that we pay for.

[farmboy44]

If you want we could meet I could give you more than break!
Your a smartass done with smart assess benefiting off us.

You don’t fool me for a minute. Likely the guy posting on
Facebook that got called out and found out was a
Grain marketer. Your job relies on all of us buying into thinking
We need the current system we don’t it needs to be
Simplified. This reminds me of the accountants designing agristability
It’s made more for them to have work than it does to be
An effective program.
You haven’t asnswered my question why did you elevator people
Mis state last years canola crop? Every farmer in the country got screwed
And every buyer got cheap canola at our expense.
The other problem with our system is you tell me an elevator
That doesn’t preach if you don’t have a contract you won’t
Be able to sell? Why is that? The reason is they then have
Tools to make money off our need to sell at harvest and these
One sided contracts.

Wow, we have a contender for toughest guy on the internet here.

Read your reply to me pal. It was a rant about city folks perception of farmers. You didn’t ask me
About why elevators misstated crops? I don’t know, why don’t you ask them? Also, Please show me which Grain company released public yield predictions lol.

Even if they did Why would what they say influence your marketing decision? That’s like asking the guy who wants to buy your truck what a good price to sell it at would be.

And as I said before all grain can’t move at once that’s why they say if you want movement in highly desirable time frames
You have to commit to it.

[farmboy44]

Blaithlin is 1000% correct!

What a happening is grain companies are forcing us into contracts or you can’t sell
When there are more contracts the market becomes stable for buyers when
The market is stable for buyers the idea of uncertainty for them
To get product means prices get driven down.
We ve all bought into this buckshot way by people who
Are creating their own work that we pay for.

Jeez for such a tough guy who makes threats on the internet I’m amazed how easily you bend over and allow these companies to “force” you to sign contracts

[Herc]

It would absolutely be In the terms.

I’m not trying to be rude I’ve appreciated your contributions here for years - but is it really that hard to comprehend?

I agree to buy a new truck for 50000. We sign a contract to that effect. It’ll be delivered in a month. A month comes by and guess what, there is a sale in at the dealership and now the truck is worth 45000. Should the dealer owe me 5k? Is he the bad guy for saying a deal is a deal? Should I be like others on here and say I’m never doing business with them again if they don’t give me a better deal than the one we both agreed to?

Bad example cause new vehicles you agree to the price when you order it. If the incentives get better the month of delivery you get the better price....

[farmboy44]

Bad example cause new vehicles you agree to the price when you order it. If the incentives get better the month of delivery you get the better price....

Yeah probably not a perfect example. It’s easy to think of other ones though. Like if you bought fert and then the price went way down and you could buy it cheaper elsewhere in the spring

I feel like I’m beating a dead horse here, didn’t mean to derail your thread bucket

[Partners]

It sounds like there are times in which more people want to deliver than there is space for

You realize the commodity pipeline runs 12 months per year, not just 12 weeks?

Not everyone can move everything all at once, hence why those who are willing to commit to supplying seed in prime windows are given the opportunity to utilize them

The lack of accountability here is amazing. The companies are the ones who are the bad guys because they want to fufill the deal both parties agree to.

Not surprised coming from you, partners should get to haul whenever he wants and get the best price regardless of how many others are willing to haul for cheaper at the same time.

just know your in the minority.The silent majority of us don’t want to see the rest of us fund some bailout for others unfavorable decisions.

9 yrs out of 10 we have made more money by forward contracting off combine. For sept.
Need cash flow, plus no where near enough bin space..