damn agrimoney reality check re durum

[mcfarms]

Was feeling real smart about my choice to seed 90 percent of the what acres to durum and was feeling real good seeing bids for mid winter approaching high 7 dollars with off combine about 40 cents lower but still like 3 bucks better than spring wheat bids. Then I read agrimoney this morning and see where they are selling it for 420 a tonne 11.44 out the seaway. arggghhh If only I knew someone who was an european end user . Oh wait I do.....FU line companies.

[mcfarms]

what = wheat

[bucket]

And you don't think that is happening with wheat?

[SASKFARMER3]

Watch all the line companies selling your last year wheat into Europe! Hm beutiful #1 high protein

[MBgrower]

Remember, the current crappy hrs grainco bids are for number 1 grade, which most of the wheat graded this year. Wait till we start delivering new crop wheat of lesser quality, those bastards are going to have a list 2 feet long of discounts, and then blend last years wheat into it to improve quality at port. God, are they going to make money if we have lower quality wheat this year. I imagine this was part of the plan, to slow exports last year to widen basis, and ensure lots of high quality carryover on farm for port blending.

[farmaholic]

Once again......I thought I was the only cynic on here

(NOT DIRECTED AT ANYONE IN PARTICULAR).....Whats wrong? Our "partners" not treating us fairly? :-)

[farmaholic]

Once again......I thought I was the only cynic on here

(NOT DIRECTED AT ANYONE IN PARTICULAR).....Whats wrong? Our "partners" not treating us fairly? :-)

[Braveheart]

I consider them partners. Business partners. Business is business. They don't consider me a charity.

Before you ask Farmaholic, I'm not delusional. But, anyone who is looking at port asking prices and assuming all sales are made at that level, and further assuming there are no other costs, and thus assuming grain cos are making a killing, now that's delusion.

If you assume so, then start your own grain co. Make it a co-op. All share in the windfalls.

Oh wait. . . Well, maybe it will work this time.

[sumdumguy]

Freight to port is $4400 a hopper car for 3300 bushels. There's $1.50, and other costs.

[Braveheart]

For all you Farmaholic types, "partners" were blowing up my phone yesterday and today looking for hrs and canola off the combine and further out. Offering strong to quite strong (in canola) basis levels. My thinking is that price levels have fallen to the point that customers are willing to ramp up demand.

[farmaholic]

I took off my tinfoil hat and understand better now.

I must be jaded by bad experience.

[farmaholic]

I think we all understand the basis costs of freight, elevation, cleaning, weighing and inspection,
margins, blah, blah, blah. It's when the margins far excede reason (whats the definition of reasonable?)If your "partner" is enjoying very profitable margins at your expense and tight margins, is that reasonable. Every link in the chain needs to maintain profitability. Remember we are price takers and you have two choices-yes or no.

[farmaholic]

Does anyone know the dollar per car difference between shipping say 25 or less cars versus a 112 car spot? As partners, do you expect to share in that efficiency gain? Did you go above and beyond getting grain in, in time for the train?

[wmoebis]

This may answer some of your questions.

http://www.cwb.ca/_uploads/documents/freight_faqs.pdf

We have all the power to negotiate all our costs with the elevators.

[wmoebis]

Works the same when selling directly to the line companies. They compete for your grain buy under cutting competition on charges etc.