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| One of the terminals close to us notified us that they had FREE deferred pricing on beans until June 30 on beans delivered before Jan 25.
This is the same elevator that raised their soybean storage rates to 8 cents per bushel this fall.
In my uneducated opinion this means they want to get their grubby little hands on the beans so they can sell, ship, do what ever with them and then pay you later. It means they are running short of the physical product, want you to hand yours over and then you are comitted to selling to them. They must have a contract to fill and not enough product to fill it with. I bet they would really appreciate it if a bunch of us would hand over our beans so they can get their rear end out of the sling.
Why else would they give up the opportunity for a large storage bill.
If you haven't figured it out I don't like DP. It lets the end user have your product without having to bid up for it and then you have no leverage at all and are at their mercy to price it later.
Makes me think there are going to be some tight supplies in the future.
Edited by Ray (ecks) 1/4/2008 23:24
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for what it's worth
