Haulage logistics for efficient grain collection

[Feldspar]

Can someone (@Grain Buyer?) explain the distinction between sending wheat into, for example, Rand's wheat futures store versus just sending wheat into their ordinary stores. How is the transaction different? What premium is there and how is it calculated? Do you transfer ownership of the grain as it goes into the futures store or not? It sounds worth learning about, but I know nothing about it at present.

ETA: have just found this, https://thefarmingforum.co.uk/index.php?threads/futures-stores.99012/, which should help me so ignore the above.

 

[Feldspar]

Actually having read that thread, I still have a question. In short, would I get enough of a premium sending grain into a futures store to offset some / quite a lot of the haulage charge (£6/t) of getting it there? If so, that would make commercial storage of feed wheat a more possible option.

 

[Brisel]

You don't get a premium for quality. If you send in over spec grain, tough luck.

 

[Condi]

You don't get a premium for quality. If you send in over spec grain, tough luck.

I dont think that is the question.

The question is what premium do you get for delivering to a futures store vs delivering to 'another' store?

The answer to that is non. The merchant will pay the market price on the day for wheat into store, and then decide what to do with it depending on how the market evolves over time. If, come delivery, it makes sense to tender it, the merchant will do so. If it doesnt make sense then the merchant will take it out and deliver to a consumer. That calculation changes frequently a trader will trade around the store. That decision is not generally the farmers, as farmers would need their own futures account to tender, through a broker.

 

[Feldspar]

Saw this store in its early stages a while ago. Nice to see it nearing completion:

 

[charlesbrown]

You don't get a premium for quality. If you send in over spec grain, tough luck.

 

[Banana Bar]

I only deal with 4 merchants now, importantly those merchants also know I insist on one haulier ( he has first choice ). Very rarely do I have to make huge trips with the Loadall although getting fixings to move 1800t of barley in the last fortnight has been difficult and on one day saw the Loadall travel over 70 miles between different farms to load. On the back of this I am now dealing with 4 merchants rather than the 5 I was a month ago!

 

[Flat 10]

Surely you can have a back up loadall......
But yes it's still easier to work with someone who helps you

 

[Feldspar]

Here's one for those who know haulage costs better than I do: is it better to haul 200t of OSR 9 miles by tractor and trailer (at 11t a load and probably at 1h15m round trip) into a commercial store or get some lorries in to move it for us?

Seems to me to depend a lot on whether the tractors and trailers need to be doing other things.

 

[Flat 10]

Here's one for those who know haulage costs better than I do: is it better to haul 200t of OSR 9 miles by tractor and trailer (at 11t a load and probably at 1h15m round trip) into a commercial store or get some lorries in to move it for us?

Seems to me to depend a lot on whether the tractors and trailers need to be doing other things.

Lorry.

 

[Flat 10]

Won't take a lot longer and is moving 2.7ish times as much. Got to work out cheaper unless you have nothing for the tractors or trailers or drivers to be doing.

 

[Feldspar]

Won't take a lot longer and is moving 2.7ish times as much. Got to work out cheaper unless you have nothing for the tractors or trailers or drivers to be doing.

One other advantages is we have some quite patchy moisture in that store. 11t a time increases the chance of hitting a wetter spot whereas with 30t it's more likely to average out.

On the numbers though, how much fuel would a tractor use hauling on the road and what cost would you use for tractor + trailer wear and tear? One of the major costs is the opportunity cost. I think we'll have time this week when the weather isn't great when the tractors and trailers won't be doing a whole lot.

 

[Flat 10]

One other advantages is we have some quite patchy moisture in that store. 11t a time increases the chance of hitting a wetter spot whereas with 30t it's more likely to average out.

On the numbers though, how much fuel would a tractor use hauling on the road and what cost would you use for tractor + trailer wear and tear? One of the major costs is the opportunity cost. I think we'll have time this week when the weather isn't great when the tractors and trailers won't be doing a whole lot.

I do things more simply than you. Lorry isn't going to cost 2.7x per hour to run/hire than your tractors. Therefore per tonne it will be cheaper. But agree with you re averaging better with 30t loads and wet week. I think tyre cost is underestimated with tractors and road work.

 

[Steevo]

What's the opportunity cost of hanging around for a lorry to turn up?

 

[Feldspar]

What's the opportunity cost of hanging around for a lorry to turn up?

Depends how and when they turn up, and whether you've got jobs to be doing in the vicinity I suppose.

 

[Derky]

Lorry Defo!!!!!

 

[Derky]

Put one lorry on the spin. Simples.

 

[Feldspar]

Lorry Defo!!!!!

Even if you have the tractors and trailers and need to pay for a lorry to come in? Ballpark estimate for haulage quotes to shift OSR 9 miles?

 

[Flat 10]

What's the opportunity cost of hanging around for a lorry to turn up?

Good point but

Even if you have the tractors and trailers and need to pay for a lorry to come in? Ballpark estimate for haulage quotes to shift OSR 9 miles?

£5 a tonne? Be done in a day. Less probably.

 

[Derky]

Depends on tip end delays? Maybe better to say have the bulker for the day. 5 at th most a tonne