Reply
Friend
JamesWarnuck
Posts: 2
Registered: ‎03-21-2013
0

Small Grain Merchandising firms

Hey everyone,


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

Advisor
c-x-1
Posts: 3,070
Registered: ‎06-26-2012

Re: Small Grain Merchandising firms

ray and the farmers know about that. hopefully someone can help you out!

Advisor
rayjenkins
Posts: 638
Registered: ‎05-13-2010

Re: Small Grain Merchandising firms

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....

Friend
JamesWarnuck
Posts: 2
Registered: ‎03-21-2013
0

Re: Small Grain Merchandising firms

Hey Ray,

 

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?

 

thanks