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03-21-2013 02:37 PM
I'm new to agriculture and am interested in pursuing a career in the field of agri-marketing/merchandising.
I've been seeing many small grain merchandising firms here in canada.
How do these small grain marketing firms work on a day to day basis, how do they make money?
Do they just buy a big grain elevator and just buy low and sell high?
I'm confused by how this works and would really appreciate some help.
Thank you and I hope to contribute to this forum
03-21-2013 07:23 PM
They are going to make their money trading freight and basis
To be successful, you need to understand grain flows.....how it moves, where it moves, when it moves
sometimes you lock up a non-grain freight move and use the grain as a backhaul
many, many ways to arbitrage the various legs of the biz....
03-22-2013 05:59 PM
Could you please expand on freight trading and basis trading?
Could you just give the typical step by step of how a small merchandising firm makes money?