Central Montana wheat storage

[ajl]

Used to laugh at Montana for being a backwater. Now they are coming to eat our lunch. Their grain handling is many times as efficient as the dog and pony show here in Canuckistan Check this out:

www.youtube.com/watch?v=SJ-iF1cz-jQ

[farmaholic]

The truckers waited up to three hours in line to dump it.on a pile on the ground???? I wonder if they tarp the pile after.

Unless you hate owning bins as much as bucket, I don't see the Montana edge. That system just cheapens an already cheap commodity.

"Give" the market your grain and expect the futures to positively react? Ya right, I realize there's pricing risk whether you store it or deliver it against a basis contract, but where's the incentive for markets to rally if the grain is already in the Trade's hands?

I am not the most astute grain marketer or market watcher and an even worse analyst but I don't see the benefit of what I described above.

[ajl]

This will be winter wheat. The obvious savings come from not owning bin infrastructure and taking storage risk, as well as loading it on a truck only once. Many of these trucks are custom haulers from custom combining crews. Have waited at an elevator here for 2 hrs before as well but that has been rare. Much of this wheat will be have been pre sold to come in off the combine. Doing it this way likely strips out close to 0.50 per bushel cost of production.

[farmaholic]

They built some new elevators between havre and cutbank !

Close for us way out here !

Montana bound !

Are you from the Netherlands way out there?

[Manfarmer20]

Yeh montana had a good crop but Kansas Oklahoma and parts of texas was a disaster. Custom harvesters were getting no work in most of Kansas and they are the biggest producer of wheat in the states by far !

[malleefarmer]

My local elevator has 120,000 tonne storage in such bunkers Farma different weather though no snow. Fillem Tarpem unloadem later

[Klause]

Rest of world:

1. Make sales thru the year, hedge risk with options (if necessary)

2. Harvest crop.

3. Haul all (or most) straight off combine.

4. Grain company floats grain from harvest to export sales time and takes risk of non/late movement and demurrage.

5. Settle up & deposit cheques.


Canada:
1 grow crop on credit.
2 build bins on credit.
3. Harvest crop and store it
4. Make sales based on prices/futures and cash flow needs.
5. Assume all opportunity cost of the grain, finance it for the grain company at cost and assume all demurrage/non movement / non sales risk from grain company
6. Pray grain is called for when contracted which almost never is.
7. Haul in dead of winter in a snow storm 2 months late.
8. Settle up and cash cheque.

[helmsdale]

Rest of world:

1. Make sales thru the year, hedge risk with options (if necessary)

2. Harvest crop.

3. Haul all (or most) straight off combine.

4. Grain company floats grain from harvest to export sales time and takes risk of non/late movement and demurrage.

5. Settle up & deposit cheques.


Canada:
1 grow crop on credit.
2 build bins on credit.
3. Harvest crop and store it
4. Make sales based on prices/futures and cash flow needs.
5. Assume all opportunity cost of the grain, finance it for the grain company at cost and assume all demurrage/non movement / non sales risk from grain company
6. Pray grain is called for when contracted which almost never is.
7. Haul in dead of winter in a snow storm 2 months late.
8. Settle up and cash cheque.

1A Be sure to thank retailer who likes to remind you of the great favor they are doing you.
2A Be sure to thank retailer again who likes to remind you of the great favor they are doing you.
4A Be sure to thank grain buyer who likes to remind you of the great favor they are doing you.
5A Be sure to thank rail company who likes to remind you of the great favor they are doing you.
6A Thank the grain buyer once again, for calling your 2 month late contract because of the great favor they like to remind you they are doing for you.
7A Thank the grain buyer once again for the great privilege of being able to haul that they are sure to remind you of.
8A Thank the check off companies when you look at the discount on your cheque because of the great favor they remind you of every time they send one of those glossy magazines out trumpeting their success.
9 Thank your banker for sticking with you and advancing enough after 1 thru 8 to put a crop in next year.

[bucket]

The truckers waited up to three hours in line to dump it.on a pile on the ground???? I wonder if they tarp the pile after.

Unless you hate owning bins as much as bucket, I don't see the Montana edge. That system just cheapens an already cheap commodity.

"Give" the market your grain and expect the futures to positively react? Ya right, I realize there's pricing risk whether you store it or deliver it against a basis contract, but where's the incentive for markets to rally if the grain is already in the Trade's hands?

I am not the most astute grain marketer or market watcher and an even worse analyst but I don't see the benefit of what I described above.

The market also knows the something is in those extra silver things being built along side those other faded silver things....

I ****ing hate bins because it doesn't get my grain closer to market ....I can't elevate it twice for less money than the graincos can.

[iceman]

Wiseguy can float on water with those wooden shoes.

Iceman