How stupid are Canadian Farmers

[RD414]

bread winer, you are either a dealer or one has you over a barrel with lube out and you like it. Klause will be 1 of the few who make it as a startup farmer. you sound like the type who will piss away grandpas farm. Klause, keep posting your aggressive ideas

[Klause]

Exactly... The powder we had last year that bridged in the air cart.... the urea that came with chunks 4" in diameter that we had to screen before being able to run it...
Oh wait.... you can buy a 6,000 gizmo to crush it up so you can use it.



We already positioned liquid for spring. Hard for us to pre buy blends because we run a different one for every crop, sometimes different fields of the same crop.


If everyone keeps falling for the pre buy in fall bullshit guess what... soon we will be storing 2 or 3 crops in our bins, and 2 or 3 years worth of fertilizer, and the guys doing this will consider themselves to be "smart".


We are shipping wheat and oats south again soon... and bringing urea and phos back... Guess what... buying it in USD with the USD we get from the grain so no forex issues.

$400 a tonne urea in USD is 550 CAD a MT.

Wheat at 6.33 a bu USD works out to 7.93 a bu.

That means 69 bushels of wheat buys a tonne of urea.

soooo buying power now.

local elevator, local N bids:

N: 650 a tonne
13.5 #2 CWRS $5.10 a bu.

127 bushels of wheat buys a tonne of N.



Let's recap:

LOCAL: 127bu of HRS........................ 1 tonne of urea
US market: 69bu of HRS..................... 1 tonne of urea

That works out to a difference of 58 bushels of wheat... even computed in local dollars that's a difference of $295.80


We are our own worst enemy because a lot of us can't do simple math!!!

[Klause]

Sorry, that should be 400 a ton not a tonne.


Also to clarify, I have no issues pre buying... and covering it with pre sales... but having said that there were no real deals this fall either... Lowest here was 510 a tonne and wheat at the time 4.70 a bushel.

[dave4441]

50 cents/lb old crop reds worked back to farm? Sorry, I haven't posted as much on here, get tired of the rhetoric. But Larry's comment is so radically full of bullshit it is not even funny. Base processing and 38 cents per pound is hardly tradeable. New crop reds are pulling back and demand is softening. But why let realities of the market get in the way of analysis.

[Klause]

dave, wanna email me some time? wondering if you are buying peas or had a bid out there ;P Always like doing business with people I (at least sorta) know.

[dave4441]

We don't buy peas yet but may be in the future. Will let you know.

[bgmb]

In the fall wheat was 6.75 locally and urea was 500/tonne picked up in spring.

64bu/tonne of fert in USD

[riders2010]

translation for dave too many other guys buy peas so its not like canary seed where a couple buyers just pick a number for what they want to pay.

[Klause]

bgmb, you must live in a wonderful world...


6.75 wheat? locally?


Must be S. Manitoba where elevators are forced to compete with the US prices... Only wheat that was remotely north of 6 bucks was the stuff that was pre-contracted a year ago.

[dave4441]

No, we don't have an asset to use for the pea market. Crawl back under your rock.