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Central Missouri | Your statement that grain merchants aren’t on the side of the farmer is dead wrong. I suspect that you are a futures broker by the nature of your posts.
Merchants and all non processing grain delivery locations make their money on volume. Most elevator owning commercials make money on back to back margin, fees, blending, and carry. To earn any of that they have to originate. To originate they have to provide service and be fair.
Merchant service has changed dramatically over the last 5-10 years. As an example I have gotten to know and trust an ADM merchant in stl. Wheat price has gotten good but I don’t want to carry short wheat futures in my futures account because I don’t do margin calls and timing and price are way more difficult to figure out in wheat. So I called my ADM merchant and told him I wanted to do a flex delivery hta off of July srw. Delivery locations are ADM elevator, ADM milling or ardent mills in stl which is where our wheat has gone for the last 10 years. 3 cents a bushel service fee. I can roll out to May to earn carry if the market builds carry.
There is nothing not on the side of this farmer in that transaction or any other transaction I’ve done through a grain merchant in the last 10 years.
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Self evaluation on bull markets......
