damn agrimoney reality check re durum

[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.

[bucket]

Please remember that the line company "families" have weekly bbqs, teas, pops, cocktails, etc. They do not compete for shit.

That's like saying gas stations don't collude when they set prices.

Back to the tinfoil and pumping the yard again. 2 inches in 30 minutes - wunderfall!

[ado089]

My "partners" in grain only take about 40-60 cents for the trouble of connecting me with a buyer and looking after documentation. I pay the freight. My wheat price is based on Minneapolis future PLUS Minneapolis basis. That's a far cry from the negative basis I would get from the grain thieves locally. If the line companies are my "partners" and they treat me this way... I don't need partners like that. Braveheart what company were you a trader for before you went back farming?

[Braveheart]

It sounds like you're having a horrible time. That's too bad.

I worked for Manitoba Pool. I started higher than a trader. Which, of course means anything ground level or higher. Lol.

[ado089]

Why do you feel I'm having a horrible time? To me a 5-10% margin is an acceptable number for a grain company to take. It's even better when hrs 14% quotes this week are about $8.75 less freight vs sub $5 at your friendly local viterra.

[farmaholic]

ado.... the message I get is they really don't want it, unless they an steal it. I