Grain price drop

[furrowtickler]

Not to worry if Russia keeps bombing Wheat prices should hold says the experts !

Wheat had a very good finish yesterday 👍👍

[shtferbrains]

Not to worry if Russia keeps bombing Wheat prices should hold says the experts !

Ukrainians have the Russians on the run the last few days.

Might be living in a corrupt country but they will fight for it.

[Rareearth]

The world was scared to jump in and help Ukraine for fear they might piss off Putin - rat in a corner will attack.

Ukraine on offensive pushing back in some areas? Putin pissed off the Ukraine grain isnt going to poorer countries/allies of his and Europe is recieving some of the Ukraine grain cheap. Putin is threatening to not allow grain exports out of Ukraine after of before current agreement expires.

I think Putin with not allow exports again out of Ukraine and will bomb more terminals, rail, threaten ships, etc

Phase two, dead cat grain market bounce, shortages, disruptions will add to the inflation and expense interest rate, currency issues of the day. November?

[farmboy44]

Viterra malt train is full.
So when was it ordered, the boat is scheduled..
Long before current $7.36 they are paying farmers now..
Hardly anyone pre priced much after last yr..
Their profit per bushel must be mega.

You had the choice to sell malt at 9.50-10 bucks this summer and you didn’t take it.

Don’t complain that they sold grain at the time and you didn’t.

[furrowtickler]

You had the choice to sell malt at 9.50-10 bucks this summer and you didn’t take it.

Don’t complain that they sold grain at the time and you didn’t.

Wow

Did you buy all your groceries a year ago before the price went way up ? If not you had the choice

[farmboy44]

Wow

Did you buy all your groceries a year ago before the price went way up ? If not you had the choice

I didn’t buy groceries a year early, but I wouldn’t be snide towards those who made the decision to and benefitted financially as a result.

He is implying they sold the grain early. If they did, they did so when the price AND RISK was higher. Now it’s the height of harvest, we know what the quality and size of the crop is, everyone wants to haul today, and the risk is eliminated… why wouldn’t the value be cheaper?

If he wants a higher profit margin like they have on this, he should have sold it when they did. The funny thing is the actual export sale could’ve been made a few weeks ago or a year ago, it’s not even a gaurentee they made it when prices were way higher.

[furrowtickler]

I didn’t buy groceries a year early, but I wouldn’t be snide towards those who made the decision to and benefitted financially as a result.

He is implying they sold the grain early. If they did, they did so when the price AND RISK was higher. Now it’s the height of harvest, we know what the quality and size of the crop is, everyone wants to haul today, and the risk is eliminated… why wouldn’t the value be cheaper?

If he wants a higher profit margin like they have on this, he should have sold it when they did. The funny thing is the actual export sale could’ve been made a few weeks ago or a year ago, it’s not even a gaurentee they made it when prices were way higher.

No guarantee of a crop either , as in zero
One hail storm and it’s gone . Short memories from last year . A lot of contracts had to get bought out . Same as this year in a big area in western Sask .

[furrowtickler]

No doubt some should have pre sold way more
Hindsight is 20/20

[farmboy44]

No guarantee of a crop either , as in zero
One hail storm and it’s gone . Short memories from last year . A lot of contracts had to get bought out . Same as this year in a big area in western Sask .

Great, you are starting to get it. If guys don’t want to take on the risk of making a contract before the crop is off, they choose to eliminate the new crop prices available months before harvest as a contracting option.

Contracts that were forward priced had to be bought out by producers and grain companies alike last year. They took on the added risk for a price they liked before the crops were off. It didn’t work out and the financial effect was negative. This year the opposite is true and the financial effect is positive.

And partners complains about both outcomes.

[shtferbrains]

Grain Co's don't speculate on the upside and downs in the commodity markets.

They hedge as quick as possible.

They take margin on basis and upgrade between the praries and the boat.

IMHO.

Maybe Larry or some of the grain Co employees may comment?

[AlbertaFarmer5]

Grain Co's don't speculate on the upside and downs in the commodity markets.

They hedge as quick as possible.

They take margin on basis and upgrade between the praries and the boat.

IMHO.

Maybe Larry or some of the grain Co employees may comment?

Thank you for posting this, I was about to do so.

As far as I know, they aren't even legally permitted to speculate.

[LEP]

Thank you for posting this, I was about to do so.

As far as I know, they aren't even legally permitted to speculate.

Reality of the trade is they are never fully covered. Can be short or long. But a trader doesn't have a job anymore if they go to far uncovered and the market moves against them.

[furrowtickler]

https://www.zerohedge.com/geopolitical/list-33-things-we-know-about-coming-food-shortages

Yet prices are dropping
Sooner or later …

[Taiga]

https://www.zerohedge.com/geopolitical/list-33-things-we-know-about-coming-food-shortages

Yet prices are dropping
Sooner or later …

Definitely a Hold unless you need some short term cash or contracted.

[agstar77]

Maybe some clarity with tomorrow's report.