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Jim Meade / Iowa City
Senior Advisor

Anyone Use Cargill Or Bunge?

Have you read this article where Cargill and Bunge admit missing the soybean market and are offering some "get well" deals for their customers?

 

I missed part of the market - I guess I was drinking the same Kool Aid they were - but I recouped a bunch of it by changing tactics.

 

http://www.agriculture.com/markets/newswire/soybeans-trip-up-top-traders-prompt-rare-offer-to-us-far...

 

I've never seen where having Cargill or Bunge market my beans put my interests ahead of theirs, but then that's just my take.  Some may have been successful and ar happy with them.

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5 Replies
hardnox
Advisor

Re: Anyone Use Cargill Or Bunge?

FWIW, I'm generally opposed to letting grain firms offer OTC deals to farmers or to take any part in marketing management.

 

Someday we'll have another big runup in prices and when we do, the people with the balance sheets that are sufficiently strong for Cargill to want to work with them will get multi-year forward pricing deals that most won't. If their balance sheets are that good let them go the the bank and work it out for themselves.

 

I know that there is zero support here for any form of populist levelling of the playing field, but that's what I think anyway.

 

That remains a mystery to me as I don't think there are a lot of BTOs who frequent this joint.

 

 

 

 

 

 

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hardnox
Advisor

Re: Anyone Use Cargill Or Bunge?

I guess that should make those of us who decided to not make sales at the lows feel pretty smart.

 

Although feeling smart is never a good idea as it has a tendency to make you think you have some sort of magic insight. Nobody knew that ARG was going to have historic floods.*

 

As I said at the time, the thing that kept me from pulling the trigger was the seasonal and the big fund net short.

 

*also, nobody knew that a punky little tropical depression was going to deliver 500 year floods to Louisiana. I don;t think that's currently a big deal for grain markets. I mention it because I don;t want to take anything for certain here- the globe is hot and wet and there are probably more weather outliers in the wings.

 

But for now it appears to have delivered the prospect of a record world grain crop.

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wco
Contributor

Re: Anyone Use Cargill Or Bunge?

when grain prices are low they want you to lock in muti- year marketing. my guess grains are going up thru march. especially beans

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roarintiger1
Honored Advisor

Re: Anyone Use Cargill Or Bunge?

Not gonna touch either company with a ten foot pole.

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sw363535
Honored Advisor

Re: Anyone Use Cargill Or Bunge?

Once upon a time.

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