|
Heart of Ohio | When there is an announcement of say 100 MMT sale made to whatever country..... has it already been priced by a merchant / exporter (ADM, Bunge, Cargill, etc.) ? Fully priced ? Futures only? Basis only? Commitment only? Or just depends? When I think of the logistics of a merchandiser / exporter getting that all squared away for loading of a future vessel .... don't think I've ever appreciated what a task that may be. I see Japan just "bought" 134 MMT for 17-18 crop year. Anyone here know how that actual pricing gets worked out? I see tenders at times too..... like a bid process? Seems to me there would be times a merchandiser / exporter could get twisted up sourcing actual grain at times.... maybe even by a competitor? Difference of a "flash sale" I hear sometimes?
Maybe it's simpler than my overthinking makes it, just seems / feels like some quick and knowledgeable decisions have to be made and a small miscalculation could mount up in a hurry? I'm guessing some "trade / industry secrets" involved too ?
Probably some horror and hero stories too ? Exporter totally on the hook with cancelations ?
Never given much thought to this side of trading, I've found Maize, Kornkrush, others involved in that end of things helpful to understand and appreciate their posts.
Edited by Frisky3208 2/20/2017 01:28
| |
|
Always curious, never understood
