|
Buxton ND | Thanks Gerb I missed that gap, I was lookin at something else last night. This does play in PREFECT to my weekends hunch. This is the challenging/fun part of markets for me, trying to figuring out what the fund boys are doing AS or before THEIR DOING IT, NOT after the fact. I have a HO for this stuff ! ! ! ! ! Probably why I couldn't sleep last night. YES I'd say they're joining the party ! ! !
Kevin DP contract have a pretty big effect on farm stored grain.
End users (a few big boy commercials are end users) Buy the front month, take out the carry out, this moves commercial bushels to the end users demand WITHOUT a strong/er basis levels to open the bin doors. With the exception of 2 weeks give or take 6-1 end user had absolutely no troubles sourcing corn the entire marketing year even WITH a generally weakening national basis levels.
Have a very good friend, retired elevator manager, had "patrons" signing this contracts for years and even he did not understand what he was having them sign. The "patrons" thought these contracts were the best thing since sliced bread. WHY ? because "THEIR" company told them they were..................... There may have just been a hidden message here.
NOW days the push is these fancy dancy contracts. DP contract + Fancy Dancy contracts = giving the commercials MORE control over YOUR BUSHELS. Call me Norwegian but I CAN NOT see this as a POSITIVE for prices to the American Producers*****
All this above your NOT gonna here on ANY farm market radio, its kinda a taboo subject. Wouldn't wanna rock the boat now would we,,, wouldn't wanna step on someone toes,,, wouldn't wanna piss someone off now. There is "politically correct marketing stuff" you know the stuff that keep everyone happy,,,, then there are opinions on NAT,,,,, I'm NOT the only one either.
GRAIN RESERVE, it was either January of 1985 or 86 I bought corn from a local Co-op for $1.43 to feed pigs. YEP that grain reserve was a really positive wasn't it ? ? ? Back then CCC payed you to store the grain, now days they HAVE payed you to build the bins to store that grain in the form of that dirt cheap FMHA/CCC Uncle financing to build them.
Now looking forward, guys havin a little troubles with the banker/s. Having alittle troubles making the CCC whatever payments on those shining new tin cans/legs/dryers/scales you know the top end farmer owned storage that $6-7 payed for. Uncle's not gonna have to twist your arm too much (storage payments) to put a CCC "Storage Assistance Program" sticker on that bin. Grain reserves = Uncles CHEAP FOOD POLICY/ Their NOT gonna call it the old "Grain Reserves" this time around "Storage Assistance Program" does sound more politically correct does it ?
Built bins they said,,,,, E plants will pay you to store it they said,,,,, $6.00 corn in the cash flows they said. YES I saw long term projections on why you gotta buy that dirt using *****$6 corn***** IDK about the rest of the country but locally think about who THEY are ? ? ? | |
|
On farm storage?
