Grains Guru
Member
- Location
- England
Thanks for your contribution. I'll put the swearing and insults to one side and attempt to debate the point.
I have to ask you though, are you one of these merchants who has caught a cold doing buyback contracts this year? You don't sound too happy... oh, and you're allowed to disagree with me so no need for apologies. We are all entitled to an opinion and allowed to express it.
Regarding your comments about 'full spec'. What is 'full spec'? Very little wheat actually gets delivered as FULL Spec but every day less than 13% Protein wheat turns up on 'full spec' contracts and gets tipped.
Which is why the mills buy lots of imported wheat and almost all flour mills have fallback's on milling wheat contracts. So, you're wrong. 12.6% Protein wheat has a home on a full spec contract doesn't it? As some very large milling homes can be found with a £1 per 0.1% fallback to 12 or £1.50 to 12. So, in my book, if you're offering the grower a good service you would naturally offer him the best possible fallback's in the market place before you cancel his over the market milling wheat buyback. I call it good practice but what do I know? Not a lot according to you.
How can the feed base be different from another 'feed base'? We don't have multiple feed values in the market. Feed 'base' value is what it is on any given day. The feed wheat price is relevant to the grower. From what I have been led to believe, when growers enter these contracts they do so on the basis that they can fix the feed base when they want. My post was about such growers who have attempted to do so and found that they are £'s out from what others are offering. Guess what? It had not happened to them in the last 3 years, so why now? When all the growers concerned have sold is 'X £ min premium over feed' which happens to be massively over the market and with no terms on the contract about the feed base. I've heard this more than once in recent times.
I know the milling wheat market and I know that not many millers contract wheat on buybacks. So good luck with that story, it's not right and it does not fit.
My entire point was to highlight the issue of feed base pricing and to make growers aware about hammering out the detail so all know where they stand. I'm amazed at your reaction to this point about feed base pricing but not surprised.
Buybacks / min premium contracts are good deals for farmers. I am openly encouraging growers to lock into more because they are great deals for farmers and there are not many of them about in the current climate. I don't care who they contract them with but just be aware of the terms because I know, that when some in the market get into trouble they look for any angle they can to discount or walk away from it and that's not fair on growers with 12 + / 76+ / 250+ Group 1.
This is happening.
I have to ask you though, are you one of these merchants who has caught a cold doing buyback contracts this year? You don't sound too happy... oh, and you're allowed to disagree with me so no need for apologies. We are all entitled to an opinion and allowed to express it.
Regarding your comments about 'full spec'. What is 'full spec'? Very little wheat actually gets delivered as FULL Spec but every day less than 13% Protein wheat turns up on 'full spec' contracts and gets tipped.
Which is why the mills buy lots of imported wheat and almost all flour mills have fallback's on milling wheat contracts. So, you're wrong. 12.6% Protein wheat has a home on a full spec contract doesn't it? As some very large milling homes can be found with a £1 per 0.1% fallback to 12 or £1.50 to 12. So, in my book, if you're offering the grower a good service you would naturally offer him the best possible fallback's in the market place before you cancel his over the market milling wheat buyback. I call it good practice but what do I know? Not a lot according to you.
How can the feed base be different from another 'feed base'? We don't have multiple feed values in the market. Feed 'base' value is what it is on any given day. The feed wheat price is relevant to the grower. From what I have been led to believe, when growers enter these contracts they do so on the basis that they can fix the feed base when they want. My post was about such growers who have attempted to do so and found that they are £'s out from what others are offering. Guess what? It had not happened to them in the last 3 years, so why now? When all the growers concerned have sold is 'X £ min premium over feed' which happens to be massively over the market and with no terms on the contract about the feed base. I've heard this more than once in recent times.
I know the milling wheat market and I know that not many millers contract wheat on buybacks. So good luck with that story, it's not right and it does not fit.
My entire point was to highlight the issue of feed base pricing and to make growers aware about hammering out the detail so all know where they stand. I'm amazed at your reaction to this point about feed base pricing but not surprised.
Buybacks / min premium contracts are good deals for farmers. I am openly encouraging growers to lock into more because they are great deals for farmers and there are not many of them about in the current climate. I don't care who they contract them with but just be aware of the terms because I know, that when some in the market get into trouble they look for any angle they can to discount or walk away from it and that's not fair on growers with 12 + / 76+ / 250+ Group 1.
This is happening.