The Value of Third-Party Grain Analysis: Your First Step Towards Better Marketing

[LEP]

LEP indeed! we have over 30 registered and active buyers approved to bid on offers. The list is growing daily.
In the name of transparency we will soon be publishing and maintaining a list of all approved buyers.

Now all we need is the market to cooperate a bit and a few farmers to decide they want to sell some grain.

Is ruby red one of them? Or has Merv shut that down???

[Landdownunder]

https://www.cleargrain.com.au/

[MyGrainExchange]

Is ruby red one of them? Or has Merv shut that down???

Sorry, who is Ruby Red?

[LEP]

That may not have been the exact name of the company. In the mid 2000's red lentil markets were hot and every Tom, Dick and Hasan wanted to trade lentils.

Merv was supposed to only be a broker. A friend of mine sold some lentils to a company called Ruby Red or some such thing. It takes delivery but ... you guessed it, the price of reds drops a there is a delay in getting paid. A big delay. My friend starts pressing Merv about the sale. Who is this company, am I going to get paid?? Eventually Merv comes out and says well actually it is my company. I am going to pay you but I need time.

Long story short, my friend did get paid. But this should NEVER have happened. If Merv wants to trade grain, fair enough. But there should be full disclosure before a transaction. For one thing it wasn't bonded.

For this reason I have been very wary about dealing with any broker unless I am confident that the buyer is licensed and bonded. That is why I question the more than 30 buyers reference.

DYODD

[MyGrainExchange]

That may not have been the exact name of the company. In the mid 2000's red lentil markets were hot and every Tom, Dick and Hasan wanted to trade lentils.

Merv was supposed to only be a broker. A friend of mine sold some lentils to a company called Ruby Red or some such thing. It takes delivery but ... you guessed it, the price of reds drops a there is a delay in getting paid. A big delay. My friend starts pressing Merv about the sale. Who is this company, am I going to get paid?? Eventually Merv comes out and says well actually it is my company. I am going to pay you but I need time.

Long story short, my friend did get paid. But this should NEVER have happened. If Merv wants to trade grain, fair enough. But there should be full disclosure before a transaction. For one thing it wasn't bonded.

For this reason I have been very wary about dealing with any broker unless I am confident that the buyer is licensed and bonded. That is why I question the more than 30 buyers reference.

DYODD

I can't really comment on this as it was well before MGX ever existed and before our team was ever assembled. That said, I know that there is a LOT more to that story and it involves many other parties including lenders that didnt hold up their end of the bargain. At the end of the day, your friend got paid because of the type of guy Merv is. He took that one on the chin and almost broke himself to make it right with those who were left on the hook. The truth is there are countless stories like this where farmers don't get paid because often times the easy thing to do is walk away. Getting paid and getting paid on time will always be a going concern in this industry and everyone should be warry of who they choose to conduct business with, licensed or not.

Because of the amount of money that is now involved with global commodity trading new companies seem to be popping up daily and we have declined almost as many requests as we have accepted.

Im actually glad this topic got brought up, Because these concerns are very real with producers and we understand that. This is why we have built very specific tools into the MGX platform to specifically protect farmers and to give them control on who is able to bid on their listings.

for example, when a farmer sets up his auction, he has the ability to choose who he allows to bid on his listing and he is able to toggle to CGC Licensed buyers only.

He also has the option to choose MGX Recommended buyers as well. These would be buyers that are well known in the industry, have been credit checked, are bondable but are not licensed for one reason or another. This could include feed lots that are CGC exempt but are reputable buyers that pay their bills on time.

The truth is there are many reasons that a company might not be Licensed and its not always because they are shady, however that choice of dealing with a licensed buyer or not, should always be up to the farmer to decide.

As i said earlier, our buyer list will be made public very shortly and it will include the buyers CGC license status so everyone involved is well informed and in control of who they do business with.

[LEP]

I can't really comment on this as it was well before MGX ever existed and before our team was ever assembled. That said, I know that there is a LOT more to that story and it involves many other parties including lenders that didnt hold up their end of the bargain. At the end of the day, your friend got paid because of the type of guy Merv is. He took that one on the chin and almost broke himself to make it right with those who were left on the hook. The truth is there are countless stories like this where farmers don't get paid because often times the easy thing to do is walk away. Getting paid and getting paid on time will always be a going concern in this industry and everyone should be warry of who they choose to conduct business with, licensed or not.

Because of the amount of money that is now involved with global commodity trading new companies seem to be popping up daily and we have declined almost as many requests as we have accepted.

Im actually glad this topic got brought up, Because these concerns are very real with producers and we understand that. This is why we have built very specific tools into the MGX platform to specifically protect farmers and to give them control on who is able to bid on their listings.

for example, when a farmer sets up his auction, he has the ability to choose who he allows to bid on his listing and he is able to toggle to CGC Licensed buyers only.

He also has the option to choose MGX Recommended buyers as well. These would be buyers that are well known in the industry, have been credit checked, are bondable but are not licensed for one reason or another. This could include feed lots that are CGC exempt but are reputable buyers that pay their bills on time.

The truth is there are many reasons that a company might not be Licensed and its not always because they are shady, however that choice of dealing with a licensed buyer or not, should always be up to the farmer to decide.

As i said earlier, our buyer list will be made public very shortly and it will include the buyers CGC license status so everyone involved is well informed and in control of who they do business with.

Ha. Can't comment on it and yet go on to write a paragraph about it.

My point was my friend was not made aware that the buyer was in fact Merv. He had called in to get a bid to sell lentils. Merv gave him the bid from Ruby Red or whatever it was. Yet who knows if that was actually the highest or best bid that was being offered that day.

You are right this whole deal shows the kind of guy Merv is.

DYODD

[Rareearth]

Brokers work for their customers ( farmers are suppliers not customers), they have no assets, are not insured etc

[farmboy44]

Ha. Can't comment on it and yet go on to write a paragraph about it.

My point was my friend was not made aware that the buyer was in fact Merv. He had called in to get a bid to sell lentils. Merv gave him the bid from Ruby Red or whatever it was. Yet who knows if that was actually the highest or best bid that was being offered that day.

You are right this whole deal shows the kind of guy Merv is.

DYODD

One thing is for certain - there was at least one higher bid available here that day - the one that Merv sold your friends lentils into after seeing the opportunity to take a cut for himself.