| central va farmer - 3/22/2019 15:29
Big deal, I've had straw turned down because moisture was to high, I've had people back out on buying hay.... and poultry litter.
Anybody can say, that a load of hay, straw, or Turkey **** is not the same as a ship full of grain, but to a little 1 horse outfit like us it's the same.
So the good samaritan elevator deals with all this drama for a whopping $.10 a bushel.
I don't believe it!
It is a big deal when you have a boatload of beans and the Chinese cancel the contract in route. Say that contract is worth $14/bu in China. They cancel and then the broker/exporter has to find another buyer or what normally happens is the Chinese will buy it back for say .40 cheaper. Adds up big time.
Also the local elevator is most likely hedging when the buy from you. ie when the give you a contract, they're calling their broker and selling the same bu for the probably .40-50 cent more. But you also go to remember they have overhead on that same .50. Figure, its costing the elevator several .15 cents just to run it through the pit into a tank, then to loadout (electric, labor, wear, insurance, etc.)
I dont know where you figured it only cost $600 to ship a '40 to the UAE but your a little light on that. Grain isn't light. It might be a back haul, but it adds a lot of draft to the ship, therefore more fuel etc.
Then figure freight to the port. Most containers are overweight so there's an added cost, port fees, shipping fees, unloading fees, brokerage fees. Doesnt take long to burn up the +4.00s over CBT on beans.
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What the elevator makes
