China cancels more Soybean orders!

[charliep]

Amen. The world of living with tighter carryovers expectations is feast or famine. Volatility and risk management are the name of the game.

[Rareearth]

I wish I could cancell without repercussion
contracts when the markets goes against me , or
for, depending on pricing situation.

If the international buyers are buying on a basis
are they still committed to take delivery in the
future? Again if the system is full, and the gorilla
doesn't want it, then what?

Is there a time limit on the so called cancelation
time period? If the system is full, not many other
gorilla out there feeding on beans( talking about
china). The exporter could be blocked from doing
other business (there a car gill type conspiracy
theory in the making, especially if they were to
"collude" with the buyer, creating hardship forbthe
competition )or forced to ship and discount, travel
to pick up the check with a souvenir t shirt, or
what else could happen?

[HappyFarmer]

Your right Rareearth. The is unbelievable that.
People can just walk on this stuff. I've said it
before and I'll say it again, a lot of overseas
buyers do not operate like farmer do on contracts.
But unfortunately it's a reality.

In most of these cases, these cancellations are
done well in advance of them being shipped ( the
last round cancelled in mid nov was for jan
shipment and I hear this last 420 k tonnes was for
feb) vs the shipp being loaded with it no where to
go. So technically yes, that "basis" contract is in
most cases renotiated and shipped. Most being
the key word. This year iI would say most will be
renegotiated with the problems on the Mississippi
and striking workers on the west coast, not to
mention a short supply of beans. Also this year
not a problem having a full system so no worries
in that regard.

If is not shipped, can be sold to another exporter,
importer, etc. lots of other people to deal with in
the world.

Most farmers would be shocked to see how
people in the world try to operate.

Hope this makes the mud a little clearer.