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Central NE | It seems warehouses have found a loophole in the grain warehouseing laws in the form of a DP contract. Eventually I think you'll see nearly all of them that don't have too much competition force Dp contracts down everyones throat.
I don't like the thought of having no recourse if an elevator goes into default. I called one elevator this fall to see if they had some room for me to bring in some corn to store, and they told me yes. After I delivered the first load, they wanted me to sign a DP SALES contract instead of a warehouse receipt for storage. I had made it perfectly clear on the phone before I brought in the corn I did not want to SELL my corn. I was peeved and did not haul them another load. I am not going to take on the role of unsecured creditor to the elevator and pay them to use my money!!!!!!!!!!!!!!!!!!!!!!! I just contracted a little '10 corn with them and I think that is just how I'll have to do business with this paticular elevator.(Forward contracts only)
Another elevator gave me the option when I hauled beans of either 1. Open storage at 4c per month or 2. DP and free storage. In that case, at least I feel there is a financial trade for assuming some risk and I chose to split the crop between storage options.
I understand the need to move some crop out, but they should at least offer a percentage of their total capacity for open storage at some point IMO.
Edited by Hayinhere 12/29/2009 23:35
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Local COOP bullying attempts
