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Feels good to be done. Now the hard part, to market this crop

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    Feels good to be done. Now the hard part, to market this crop

    So farma others or all what does this mean , obviously I’m stating the obvious but some nuts and bolts for me.

    So all of you store 100% on farm yes or no?

    As you harvest you have rough idea of grade moisture protein test weight before you store so in theory you know your product yes no?

    Most of you do NOT pre sell it seems yes no?

    So use you farma wheat hits a price that tickles your fancy and bank balalance do then ring broker company what ever lock in price then they test and you get plus or minus depending on quality yes or no?

    Can you deliver ASAP or it’s priced quality checked you deliver at a later date or both?

    So it’s not like our cumbersome at times pricey system of harvest grain gone a few hours later into elevator system graded and can be priced or you can warehouse it free storage until March 1. You can disclose your tonnes to buyers if you choose. But buyers always know unsold tonnes in a elevator and grade in total but not individually up to grower to disclose.

    If harvest takes say 5 weeks here you can harvest price and sell all in that time frame.

    Me I go for domestic market bit trickier but worth it in 70% of years.

    There are no let’s call it inland storage terminals across Canada that hold 300,000 plus tonne owned by corporates or farmers for that matter?

    Farmers banding together here building there own inland terminals rather than on farm. Meaning 200 farmers put in 40 k each mostly bunker sites which don’t work in your climate and of course you guys can’t unload sites 24/7 12 months of the year.

    Sorry for dumb questions even dumb post but no worse than some threads on here at times.....yeah yeah I’m guilty as well

    #2
    Edit again you can haul into USA if you want? Forget about Covid or freight cuts it out that way as well.

    Ps a lot of elevators here have been sold to end users working well

    Comment


      #3
      I will reply with my two cents later but in the mean time it would be nice to hear from others.

      This is a marketing forum isn't it?

      Comment


        #4
        Originally posted by farmaholic View Post
        I will reply with my two cents later but in the mean time it would be nice to hear from others.

        This is a marketing forum isn't it?
        Not asking for financials sell price or top secret info just logistics from harvest to sale. And your selling options

        Comment


          #5
          We have presold about 40% of our oats at $2.85
          Delivered right from combine
          Presold about 20% feed barley for $3.90 and delivered from combine
          We normally do this for space reasons but this year 33 % of our acres(peas,canola) were plowed down from hail so bin space not a problem
          Also have a bagger for last resort on normal year
          Have about 50-60 bu/ac storage which is not nearly enough most years
          Presold 30% of our nexera with act of god , pisspoor price now , $12.80 i think
          Werent smart enough to presell any wheat or even sell the last 20% of out old crop wheat for that matter
          As i said before am a pisspoor marketer
          I Listen closely to 101

          Comment


            #6
            So a fair bit of your grain sold domestically case?

            Comment


              #7
              We try to have enough bin space to store our whole crop. We really don't rent any meaningful amount of land so its not like we have to have storage for acres we don't own. In yesrs of bumper crop we might move bins of grain that aren't full, or rent bins from neighbours who quit farming and their tenants use bags or move it to market off the combine.

              Since there is alot of rented land in the area, grain bags have become very popular. For a land owning farmer, I think they are a temporary solution to a long term problem. But they definitely have their time and place.

              There really are no "community" bunkers we can store grain in and have Merchants buy tonnes from. There was a push for farmer owned Inland Terminals, but many(or all) had major GrainCo affiliation because of the nature of Canada's grain market. Many have been sold to major GrainCos who do business in Canada.

              So bins it is in the Ghetto, I feel it gives me marketing power if I can afford to sit on it(keep possession of the grain). Although I then assume the storage risk.

              As for loading and moving grain....winter makes the job harder but it never really stops except for the most extreme cold conditions..... although winter does slow pace down in my opinion. Image trying to haul grain in minus 30 something temperatures..... not fit for man or machine.... very hard on both.

              As for pre-selling, I don't do much at all. But did pre-price some canola before it was harvested this year. I don't like pre-selling grains that are prone to weather downgrading because premiums and discounts aren't written into those contracts and if downgrading occurs you are stuck with the contracting Company..... even if you could get a better grade and price somewhere else. Imagine the Buyer also grading the grain they are buying from you..... might be biased. But there is always the option of using the Canadian Grain Commission to settle grading disputes.

              I hate target price agreements. That's where you offer your grain at a certain price to a buyer on a contract..... and it just sits there until THEY decide to accept it, but you can cancel the contract at any time. I think you should be able to offer the same grain to multiple buyers using target price agreements at the same time, and in the unlikely chance they both or all accept the contract at the same time....you get to decide who you want to sell it to. That would promote more realistic competition for the same grain. Too one sided the way it is today(our commodity orgs should be working to have this changed)

              Every farm is different and does what works for them based on cash flow needs and how much risk they want to take on.
              GrainCos try to entice delivery of grain but leave the pricing risk with the grower. I don't like that. They are in control of their own basis deductions in a futures first contract and if you do a basis first contract your at the mercy of the futures market. Either way the grain is in the buyers hands and you are left with the pricing risk.....anything wrong with that picture. Some people might be ok with it but I'm not.

              I like to keep possession and control of my grain until I sell it. In the event I do pre-price in advance it will be a small percentage of expected production, but I seldom do any. Some production contracts have Act of God clauses that get you off the hook in the event of a production problem.

              There is probably lots more that could be said....

              Comment


                #8
                Often here in October new crop prices good, USA harvest done Canadian done and EU. Black Sea.

                If there are production queries prices often spike just before Australian harvest, out tonnes unknown once h rvest starts and yields kno wn prices either stay stable or fall. Then at end of harvest a lull until feb March.

                Droughts throw that theory out just keeps heading north all harvest.

                Seems like we’re spoilt here a bit on farm storage , elevator storage 28 kms away think 100,000 tonne all grades plus two so huge feed mills and feedlots dairies es piggeries Poultry

                Why did elevators shut across Canada from memory when I was there in 83 was starting to rationalize and kaput what 10 years later?
                Last edited by malleefarmer; Sep 20, 2020, 01:03.

                Comment


                  #9
                  So back to original question, in a months time you decide to sell 400 tonne of wheat to buyer A mid October let’s say it’s October 20 when do you shift grain that’s buyers call or depends how bad they want it.

                  Let’s say this is a cracking price could also mean another 150 farmers selling 400 tonne.

                  Are there logistic issues first in first serve deliver to a elevator

                  For argument presume I’m talking export so goes out of a port somewhere.

                  Weeks to wait or more?

                  I’m sure 90% of farmers on here have no cash flow issues as I often here lock the bins. But sometime you need cold hard spondoolee

                  Comment


                    #10
                    Mostly buyer's call Mallee. GrainCos aren't always taking all grains all the time. Some even try to "schedule" their deliveries based on what they need.. Besides trying to schedule which grains they are taking they try and schedule who can haul which days so everyone doesn't try to haul on the ssme days. "Orderly marketing".... lol.

                    The elevator consolidation was necessary in my mind, the old system became antiquated. Too many small high maintenance wooden elevators that were only able to load small batches of grain cars at a time. The amount of rail available to park and move cars on was also a limiting factor as well as the amount of grain the facility could store. Even some bigger first generation elevators/terminals that were built after the standard old wooden structures are being closed. The system evolved into high through-put, larger unit train loading facilities.....efficiency, but hard on the road infrastructure because alot of highways weren't build to handle that much heavy truck traffic.

                    Logistics..... from farm to port is something. Co-ordination important. Weather even affects it.

                    To me, I'm blind to the domestic market. To me it's limited compared to the amount of grain grown so most is exported.
                    Other than a bit of malt, feed grain to feed mills and feed lots, the domestic market is minimal in my mind. Has anyone sold direct to a flour mill? No pasta plants. I guess we do have a domestic canola crushing industry 👍.
                    Last edited by farmaholic; Sep 20, 2020, 05:48.

                    Comment


                      #11
                      I wish someone else would chime in and give you their opinion. Their experience and thoughts might be different than mine.

                      Comment


                        #12
                        Originally posted by farmaholic View Post
                        I wish someone else would chime in and give you their opinion. Their experience and thoughts might be different than mine.
                        Guess it’s off topic........

                        Must be hard at times, you can almost almost sell grain 24/7 here during harvest. Different than you guys.

                        Local feed mills open 24/6 for deliveries.

                        I envy you guys on lots of things in awe at times but marketing selling grain don’t envy that.

                        Thought might be more discussion no secret means business just the process.

                        Guess guys in eastern provinces way different how they do things.

                        Comment


                          #13
                          Originally posted by malleefarmer View Post
                          So a fair bit of your grain sold domestically case?
                          canola yes to crushers
                          oats lots domestic and lots to US
                          i think a lot of feed barley ends up in southern alberta
                          most canary to MX

                          Comment


                            #14
                            Originally posted by malleefarmer View Post
                            Guess it’s off topic........

                            Must be hard at times, you can almost almost sell grain 24/7 here during harvest. Different than you guys.

                            Local feed mills open 24/6 for deliveries.

                            I envy you guys on lots of things in awe at times but marketing selling grain don’t envy that.

                            Thought might be more discussion no secret means business just the process.

                            Guess guys in eastern provinces way different how they do things.
                            they're open lots here if they need it, not so much if they don't
                            they sure as hell need it this year

                            Comment


                              #15
                              Elevators can’t fill up on shit they don’t need for a few trains.

                              I’m in feedlot alley so more domestic use around here. Barley and wheat to feedlots. Barley to Calgary for malt. Some Wheat to Calgary for flour. Some Wheat to Calgary for malt.

                              Peas aren’t very domestic. Lots of peas sold off combine around here.

                              Most wheat and canola is exported.

                              Comment

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