Life lesson 476! Getting out of a grain contract!

[carebear300]

I hadcontracted yellow peas for sept delivery at 5.90 a bushel. I got wiped out with a hail storm and flooding, but they never asked why I wan't out. I think the price now is less, so there seemed to be no problem.

[wmoebis]

Sf3 how much per bus did you have to pay to get out of contract? What was the contract price?

[SASKFARMER3]

Some done real early at 5.75 then 6 and 6.30! Last I kept!

[SASKFARMER3]

They are telling me the price at their point is $6.25 so I have to pay the difference.
AH really pissed since pea prices don't really trade and the companies can make up a number and our company is making a very high number.

[wmoebis]

I guess what the elevator would like is for you to back out of $6.30 contract and fill the $5.75.

If you back out of $6.30 will they give you the .05 diff on new price? LOL

[TOM4CWB]

Sf3

Looks like you are speculating... The lowest contract should be filled first.

Sounds like you were treated fair.

Truly... If you were holding the other end of those contacts... Would you expect to receive less?

Just curious.

[Tandem007]

We know the answer to that one

[ado089]

Has anyone just flat out walked on a contract? If so what were the consequences? BTW I heard Cargill has started to back out on old crop wheat contracts with a **** you type attitude. "We have lots of lawyers sue us if you want" was the quote I heard.

[SASKFARMER3]

Ah tom your a genius in your own mind! Speculating my ass! It's a flooded fricking mess. Looking after shit before the real truth comes out on this crop!

[sll91]

You do realize that as soon as you sign your contracts with the "big bad grain company" they turn around and sell that product to someone else and sign a contract with them... Why should they make it easy for you to buyout when they would have to unsell? If your willing to take the risk of signing a DDC for the extra few cents why should you get to back out or walk away from your responsibility and leave them hanging? It hurts your reputation more than anything and other companies wont want to do business with you.