Rumour has it that CGC pulled NWT licence

[helmach]

I worked at the ethonal plant for 2 yrs during commission and first fire. Didn't have much to do with NWT terminal but always heard positive things coming from the elevator side. Sad to see

[wheatking16]

Been watching their information posted on sedar all winter. They have had a tonne of losses that they have borrowed to cover.

They were at the point of not having the working capital to operate at a profitable capacity. There was no way they could work their way out of the situation.

Only answer was a sale to someone like Grainconnect or G3. But they can read statements and know that they can fight over the scraps in receivership.

LEP,

Do you have insight into the source of the losses, I e. trading, lack of volume, etc?

[LEP]

LEP,

Do you have insight into the source of the losses, I e. trading, lack of volume, etc?

From the financial statements it looks like trading losses. I didn't go back in history, but 2021 was hard on the entire ag sector.

The ethanol plant lost money even though they sell alot into the micro distillery industry.

I don't have any inside information.

[wheatking16]

From the financial statements it looks like trading losses. I didn't go back in history, but 2021 was hard on the entire ag sector.

The ethanol plant lost money even though they sell alot into the micro distillery industry.

I don't have any inside information.

Thanks

Trading losses makes sense to me, but I don't know, the grain business has been difficult the past few years.

I think it is an extremely difficult, high-risk task.

The ABCD's have been becoming more vertically integrated into the country as the trading profits are not where they used to be.

Trading commodities effectively requires a lot of experience, and mentorship is crucial.

It is not for the faint of heart.

All the respect to those who can last.

Johnathon Kingsman has some great books on commodity traders, some of which I have read.

[ajl]

Well once again we learn the lesson that there are exactly zero businesses here in shitholistan that make money on there own merit. This is why there is a PHENOMENAL amount of gubmint tit sucking going on around here. NWT was likely trying to juice returns through commodity speculation which always ends badly. Admittedly there are likely a few oil and gas business that do make it on there own but otherwise no.

[Herc]

PS
Herc your marketing decisions start with the crop choice and variety you grow.
Call me anytime.

Sorry honey I know what I’m doing. Don’t need ur help recommending pulses…..btw naybors 18 bpa peas don’t pay the bills when the wheat across the fence went 70……

Sounds like if I call you, I call ritchies shortly after….

Have a nice day, I have hrsw to clean and sell…..

[blackpowder]

Ah yes, almighty wheat.
In my career mostly bouncing around break even yet we have no other choice for half our acres.
Simple tho. Far fewer risks to grow and sell as other choices. Just dump it in the pit essentially. There's a reason why near retirement farmers grow mostly wheat.
Wheat is my least risk and on average least margin. This year, -$100.
Peas on the other hand are my highest risk, highest margin on average. See the correlation?
No rock solid buyers. No hedge-ability. And yet reducing competition for wheat. As if that makes a difference. Wheat is like selling 3/8" NC nuts to the world.
Support the health of our industry no matter the grain, or just dump er in the pit and get back to fishing.
I've never sold to or planted for Vickie. Doesn't mean she isn't right regarding our hillbilly attitudes (my words) towards the industry we compete in.

[blackpowder]

Thanks

Trading losses makes sense to me, but I don't know, the grain business has been difficult the past few years.

I think it is an extremely difficult, high-risk task.

The ABCD's have been becoming more vertically integrated into the country as the trading profits are not where they used to be.

Trading commodities effectively requires a lot of experience, and mentorship is crucial.

It is not for the faint of heart.

All the respect to those who can last.

Johnathon Kingsman has some great books on commodity traders, some of which I have read.

When WA went under, from memory, a good portion of debt was trading loss. Two seperate companies from memory.
A trader told me afterwards, WA had two younger guys running accounts.
Caught up in things like CAD- AUSD swaps.
Specialty crops a tough game. And then there's stupid.

[fcr]

Just sold 5 loads of peas for almost the same dollar value as 9 loads of hsw. Zero Fert on peas so they are far and above our best money maker this year, should have had the whole farm to peas of course every area is different. Peas were in first so everything seeded early here was better .

[LEP]

Sorry honey I know what I’m doing. Don’t need ur help recommending pulses…..btw naybors 18 bpa peas don’t pay the bills when the wheat across the fence went 70……

Sounds like if I call you, I call ritchies shortly after….

Have a nice day, I have hrsw to clean and sell…..

That's harsh. Vicki has been an agriculture advocate for many years. Worthy of everyone's respect.

Like I have said before, I sent her a few dollars as a University student in the eighties when she was advocating for a Triple E Senate.

If you have to call Ritchie Bros it will likely because of your cocky attitude.

[westernvicki]

This is my linked in post:
This is a story about the oligarchs of the grain trade. It is also a story about how made in Canada burdensome costs that have Canadian every enterprise less competitive.

These facts are reflected in our GDP.

There is a canary.

NWT's idling of their capacity is the canary in the mine. Terminal elevator capacity, running at just over 55% for three years, has made independent suppliers less of a player in supply chains in an industry where proposed mergers (Viterra/Bunge) are expected to consolidate the sector further.

Once a bustling farmer-owned independent,
NWT's shutdown announcement rocked the community and farmers to the core. It followed the Canadian Grain Commission's rescinding of the licenses of three special crop handlers for noncompliance.

The ongoing exodus is widely believed to be a complex result of an overbuilt industry facing global competition, which now must include protectionism decreasing demand, high made-in-Canada costs, and the unsettling shift in international trade routes,

The industry also faces a historic collapse in farm income as commodity prices fall and input costs remain stubbornly high. This will impact the supply chain.

As the elevator basis reaches the highest levels ever, farmers in Western Canada face that freight to market has become the highest single input cost, with the carbon tax adding to the costs at every junction.

As we approach the winter of 2025, the entire spectrum of stakeholders, from farmers through industry to policy analysts, will be under pressure to collaborate and find solutions. The goal is to sustain the profitability and competitiveness of the Agri-trade sector, a multi-sector multiplier worth billions to the Canadian economy, and the lifeline of the transportation network in Canada.

The review of this mine is long overdue. Saskatchewan Grain Elevator Idles Operations ([url]https://www.syngenta.ca/market-news/saskatchewan-grain-elevator-idles-operations[/url])
syngenta.ca ([url]https://www.syngenta.ca/market-news/saskatchewan-grain-elevator-idles-operations)[/url]

Support small business if you want to keep them alive. And that is why we need effective risk management tools.

[westernvicki]

No one will ever deny that a great wheat crop is wonderful and the most accessible, least risky crop to grow! We have been special crop growers since the early 70s, and in the mix, we find them valuable contributors to our profitability and rotation. However, the beauty of farming is that we all decide on a mix of risk, revenue, and crop/livestock expertise that works for our unit!

I want to express my sincere gratitude for the engaging debate and the thoughtful comments that have been shared. Your insights are truly appreciated.

I still lobby for constitutional reform. Canada has incredibly few adequate checks and balances. The need for an equal, elected, and effective bicameral balance is ever more apparent today as we see the choices being appointed now and bills that would never make it through an effective, sober house of second thought being passed.

Hope springs eternal.

Thank you.

[Freightshaker]

That's harsh. Vicki has been an agriculture advocate for many years. Worthy of everyone's respect.

Like I have said before, I sent her a few dollars as a University student in the eighties when she was advocating for a Triple E Senate.

If you have to call Ritchie Bros it will likely because of your cocky attitude.

I sense a bit of a riff and had to go back. Maybe started in the other thread about her calling him out “if everyone was like you”? That is my most educated guess but the way I read it, seems like his comment was not about diversity but rather just covering your bases with getting payment? Sometimes things get misconstrued when you are not having a physical conversation. Maybe thats why she wanted him to call? Or maybe jabs on both ends. Who knows.

Oh well I’m sure it’ll pass.

But back on topic, I’m sure some wish they got their cheques at NWT though. I can tell you that much for free.