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Uncollected grain?

Discussion in 'Cropping' started by marcot, Jan 8, 2019.

  1. marcot

    marcot Member

    Location:
    Bury St Edmunds
    What's the general consensus on uncollected/cancelled grain contracts?
    I sold a load of soft wheat to a Merchant at the beginning of December, specifically for collection at the end of the month ...they asked me to load it on New Years Eve which I was happy to do. On the 29th they rang to say that the mill had cancelled the load. No further contact from the merchant.
    Is this load now mine to re-sell or am I still obligated to the merchant?
     
  2. you are obligated. they will tell you they'll collect whenever and pay you 21 days after end of Dec. suggest to them that's not the point, you wanted to store Gold in the shed and you've lost out on £1m worth of income during the first week of Jan.
     
  3. Keep quiet unless you need the space then when they ring mention a months carry please. Do not sell the grain a second time. You can't do that.
     
  4. marcot

    marcot Member

    Location:
    Bury St Edmunds
    Close ....I wanted the shed empty so it can be used as a set in a porno ...I was hoping for a bit part .....
     
    czechmate, Farmer-George and MrNoo like this.
  5. marcot

    marcot Member

    Location:
    Bury St Edmunds
    So the Merchant can cancel ...not collect ...having specifically asked me to load on that date ...and it's still theirs? How long is it theirs for then?
     
  6. He has not cancelled the purchase, he has cancelled the collection, possibly due to circumstances beyond his control. The grain is still sold and your contract with him remains valid: for both parties, I might add. What if the wheat price had fallen out of bet on 1st January? Should he be able to walk away from your contract trouble-free and go and buy another 29 tonnes for less?
     
    Grain Buyer and Brisel like this.
  7. marcot

    marcot Member

    Location:
    Bury St Edmunds
    The contract was for December collection which hasn't happened ...I'm not too interested as to why.
    As it happens I don't need the space or the cash flow ...I'm also not too bothered by the price ...I don't think it's moved much either way ...it's the principle. So I ask again ....how long can they keep me hanging?
     
    Laggard and Against_the_grain like this.
  8. Read the fine print on the contract. It was a contract for December movement, agreed, but that did not happen. His failure to collect does not make that contract void. I cannot remember for how long a contract remains valid.
     
  9. marcot

    marcot Member

    Location:
    Bury St Edmunds
    So is the Merchant obligated to pay me on Jan 28th regardless of whether he's collected or not?
     
    Laggard and rickane like this.
  10. I know not what payment or contract terms your merchant operates within, I can only suggest you ring them and ask. Having been in the position in the past, if the customer rang me needing grain moving pronto, I would move it pronto, and if he needed payment desperately fast, I would pass that information to the department in question so they could arrange that for him. Not everyone in the entire world is a huge great white shark looking to shark little people all the time.
     
    czechmate, Fossil and pgilliat like this.
  11. lloyd

    lloyd Member

    Location:
    Herefordshire
    This happens to most farmers at least once a year and probably with a different grain buyer each time.(n)
    I know its annoying but the number of grain buyers are limited so can you afford to loose one:scratchhead:
     
  12. marcot

    marcot Member

    Location:
    Bury St Edmunds
    I'm not annoyed and I'm not looking to fall out with them ...I just wanted to clarify whether this December contract was now null and void or not
     
    Laggard likes this.
  13. marcot

    marcot Member

    Location:
    Bury St Edmunds
    Their payment terms are 28 days from collection .
    I'm not suggesting I've been shafted by a shark (strange analogy but whatever floats your boat) as I said the grain price hasn't moved significantly since I sold. But this contracted load can't belong to a Merchant indefinitely without collection or payment can it?
     
    multi power likes this.
  14. farmerm

    farmerm Member

    Location:
    Shropshire
    A few years ago I had some grain movements running months behind. Think a combination of merchant having overbought and mills cancelled orders left them with a mountain to move.. it was slightly irritating esp as market was rising, but did get a few pounds a tonne paid for storage. As said before you can’t just resell it just like merchants can’t cancel on you if they find the market prices has since fallen. Give the buyers a call and they will likely prioritise your movement... squeaky wheel gets the oil and all that.
     
    Nearly and marcot like this.
  15. David.

    David. Member

    Location:
    J11 M40
    Interesting nobody has yet answered the question, how long before contract is void then?
    My example would be contracted oats, priced and sold in Nov, for December collection. Buyer says in Dec, sorry no collect 'till Feb, and by the way, contract is buyers call anyway.
    Had they said no Dec collection at outset, I would not have priced them in Nov.
    I'm not annoyed either, but shall not be had the same way again.
     
    ewald, tullah and dragonfly like this.
  16. DanniAgro

    DanniAgro Member

    That's right - has anyone got the answer to the burning question of when a contract of this sort runs out?
    Someone here must have experience of this issue or have legal training...
     
  17. Brisel

    Brisel Member

    Location:
    Dorset
    Look at the terms of your contract. AIC number 2?

    I've had several contracts rolled forwards this year due to a lack of viable boat trade. Most have paid a £1/t/month carry so far.
     
  18. Rob-B

    Rob-B Member

    Location:
    Rotherham
    £1 a tonne a month carry? If the boot was on the other foot I’m sure they would be charging more. What’s grain storage rates alately per tonne? I would wager they are greater than £1 per month and I think our local one charges by the week.

    Not that I’m criticising, I just thought it sounded very little and very much a case of double standards from their part of the industry.
     
  19. Brisel

    Brisel Member

    Location:
    Dorset
    25p/tonne/week storage cost? :)

    I've got one malting contract accruing at £1.50/t/month. Grumble all you like, but I think more folk ought to look at the paperwork.

    What is your monthly increment @Derky @Jetemp @Clive ?
     
  20. Rob-B

    Rob-B Member

    Location:
    Rotherham
    I’m not grumbling i’m being educated. Never needed to use storage and just thought it sounded too cheap. I seem to think a neighbor saying he was paying £1.50 a week per tonne in the summer for storage. Probably the reason why I thought someone was being diddled.
     

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