Large grain merchant gone under.

teslacoils

Member
Arable Farmer
Location
Lincolnshire
There’s a statement that the silos were re-measured and found to not actually be the same size/ capacity as the nameplates on them, which may explain some of the discrepancy. Whatever way, it seems criminal that they can have effectively sold grain that they didn’t own. It doesn’t help that the stuff is fungible though - so who knows who owns which actual grain?

If I were the company stock takers/ accounts auditors, I’d be checking my insurance documents very carefully.

FML how would they explain their RT "mass balance" if a grain store doesn't know how much grain they have in stock? Volume X density isn't tricky really is it for physical stock. And is a bit different than only having ten percent of futures sales in actual grain. Let's hope that those responsible don't do well from those who end up with 5p in the pound for their grain.
 

MrNoo

Member
Arable Farmer
Location
Cirencester
There’s a statement that the silos were re-measured and found to not actually be the same size/ capacity as the nameplates on them, which may explain some of the discrepancy. Whatever way, it seems criminal that they can have effectively sold grain that they didn’t own. It doesn’t help that the stuff is fungible though - so who knows who owns which actual grain?

If I were the company stock takers/ accounts auditors, I’d be checking my insurance documents very carefully.
It'll all be RT assured so obviously very traceable !!!! Just shows what a waste of time it is
 

Chae1

Member
Location
Aberdeenshire
FML how would they explain their RT "mass balance" if a grain store doesn't know how much grain they have in stock? Volume X density isn't tricky really is it for physical stock. And is a bit different than only having ten percent of futures sales in actual grain. Let's hope that those responsible don't do well from those who end up with 5p in the pound for their grain.
You just fill up the door of stores.

Open shed door and looks like shed full of barley/wheat.

But nothing behind it.
 
A grain store weighs everything in and every thing out so should know what is in the store every bin and every shed

a good tape measure and a calculater can give the max and minimum capacity of a store

all grain in is tested so specific gravity is known

reads too me that they have been sailing close to the wind and then a very short harvest comes a long and prices rise volumes fall taking risks on paper grain numbers go against the company view and they double up as they are sure they are right untill the bank says no more and all the futures trades have to be exited in one go

the lesson good risk management is the most important attribute any grain business need the longer you are in the grain business the more important it is
 

Neddy flanders

Member
BASE UK Member
in my limited knowledge of the situation, it appears grain has gone "Missing".
Where has it gone? export? other merchants? end users? did none of these buyers smell a rat when offered large tonnages ?
 

glasshouse

Member
Location
lothians
in my limited knowledge of the situation, it appears grain has gone "Missing".
Where has it gone? export? other merchants? end users? did none of these buyers smell a rat when offered large tonnages ?
Its called selling forward
Everybody does it
Especially with shares
About. Twenty five yrs ago another edinburgh grain merchant sold forward but the market jumped and he went bust
 

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quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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