opportunity for us

**fjlip** · Feb 7, 2015, 17:43

So near zero cost is like a back haul instead of going to China empty. Unlimited labor in China to play with grain in mini bulks at their end.
If enough of the shipping goes this way, either container cost would go up, or bulk go down. Things are getting strange alright, smaller is better/cheaper/more profitable!
RR's, loading docks, better not start screwing us on handling charges either! Insurance?
So only big IF is payment for goods shipped, major item unchecked.

**Klause** · Feb 7, 2015, 19:10

Most international trade is letter of credit from a major bank.... that helps quite a bit.

Smaller is sometimes more efficient.

Right now good red spring wheat #3 equivalent 12.5% or better protein is trading around 330 usd delivered to port.

**fjlip** · Feb 7, 2015, 19:42

There it is again that MISSING $5/ bu.
"Smaller is sometimes more efficient",
Yup that is a fact... for most business.

**farming101** · Feb 8, 2015, 07:41

Klause,
I'm interested in where you discovered the quote for #3 at port(which port).
Ag Canada lists #1 13.5 at West coast as about 335 CAD; St Lawrence about 350CAD.
Thanks

**Hopalong** · Feb 8, 2015, 08:46

Last I heard, container grain shipping was not under the revenue cap.
If freight is actually lower cost because of maximum revenue entitlement agreement for bulk grain then it is a disincentive for container shipping.

**Hopalong** · Feb 8, 2015, 08:59

Perhaps the missing $5 per bushel that some see is a penalty rather than a premium for Brand Canada and Made in Canada system.

**Klause** · Feb 8, 2015, 12:18

No... It's Canadian companies selling it for that amount.

I've found 2 of our grain families on Alibaba so far selling Canadian wheat, canola, oats, and soybeans...

I won't say which ones, you'll have to find it yourself...

$330 CAD FOB. $5 is the margin between us and that boat... Basically grain companies make 50% much like input companies make at least 50% on our backs...

#1 wheat doesn't get exported. It gets blended for the most part.

**farming101** · Feb 8, 2015, 17:55

Thanks for the info. Never thought of poking around Alibaba to see who is using it on the Canadian end.
#1 Wheat: In the first 5 months of the crop year 1,577,500 tonnes of HRSW was exported as a #1. Likely some goes out by specification rather that grade as well.
CGC and Stats Can.
However most is as you say, usually blended when preparing a grist.

**Klause** · Feb 8, 2015, 18:02

"exported as a #1"...

Kind of like Viterra buying your #3 as a #1.

The bills of sale for my wheat going out in a container also say Canada #1, but the physical specs are equivalent to a #3 CWRS.

Figure that one out.

opportunity for us