Positive Wheat Basis

[Braveheart]

Bottineau Farmers Elevator in ND was $0.70 under Dec Mpls the other day. The positive basis would make us higher than ND now for 13.5 px.

[Klause]

Bucket you can go get your 10 bucks then clean it ship to port load on a vessel ya da ya da. If you have never looked into the costs of all this its hard to figure.


If we are above 6.50 right now our system is being efficient and everyone is fair with no gouging going on.

[bucket]

Klause

I think those charges are called elevation and cleaning.

Oh wait they don't clean grain they add deer shit to the boats. Short memory you have. Most contracts have an allowance for dockage up to 8 percent.

You have to be kidding you think 6.50 doesn't leave a buck fifty in the grainco pockets.

[bucket]

Klause

I think those charges are called elevation and cleaning.

Oh wait they don't clean grain they add deer shit to the boats. Short memory you have. Most contracts have an allowance for dockage up to 8 percent.

You have to be kidding you think 6.50 doesn't leave a buck fifty in the grainco pockets.

[Klause]

Greatly depends on buyer as far as dockage.


Grain also must be blended to meet spec.


Probably more like a buck...


Would you rather they make no profit?

What is an acceptable profit for a grain gompany?

[farmaholic]

Klause, I don't think anyone here is denying the inland terminals need to make money. But it's gone beyond elevation and cleaning.

I've said before, Their Trident:
1: elevation
2: purposely misgrading
3: blending

Lots of options and combinations of options to make money.

I wonder who nets out better at times the Handler or Producer?

[bucket]

Does 750 million for the viterra unit seem fair considering they were supposedly bankrupt not too long ago?

[ado089]

Freight, elevation and cleaning costs are well under $2/bu. Actually the old CWB tarrifs were quite close with about $15-20/mt of slush for the grain companies...at least when I was buying grain. But that was almost ten years ago and you had to work for market share back then.

[ado089]

We also got to keep the difference between the single car freight rate and the unit train rate. Back then out of central Alberta that was about $12/mt. I often used some of that to pay a trucking premium.