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Honored Advisor

Re: Ray Jenkins video

Ray J.

Thanks for that video.  I think it is easier to get a feel for when explained on the buyers side... If I would add anything I would be to emphasize the points at which natural flow of grain slows, why, and what actions remedy the issue.

Our main association has been in the feedlots but our ethanol share of sales seems to rise every year.  

It took years to make some of those "associations" and I hope and expect to be on the call list when grain gets tight.... Even if it is not exactly when sales were planned, I have found that a sale here and there when need arrises is well rewarded in marketing information and perspective, as well as opportunity when grain basis goes up.

Working through a merchandiser can be beneficial for both even if it takes some pooling to make volume.  For the most part merchandisers we work with don't seem to favor volume that much.  But all like to "know" the source they are dealing with and what to expect from that relationship.

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Veteran Advisor

Re: Ray Jenkins video

When I was in the position of wanting to add a couple of days of "insurance corn" due to impending weather conditions, my preference was to buy 25,000 from 20 different accounts than a much larger amount from just 2-3 businesses

 

couple of reasons....first, it spread the risk of non-performance by any one account and secondly, it was always a nice way to let the farmer side of  the origination biz know they were appreciated for the extra effort

 

now, to show how much the speed of communicattion has changed things......15+ years ago, you would run a quick ship bid for half a million for 36-48 hours to get it covered.....farmers needed to line up freight, etc...

 

today that same half a myn bushels is covered before the afternoon bids go out as we text and use radio to alert folks.....and folks now have their own freight and can make the decision quickly......

 

you pretty quickly know who can get r done time after time when things get tight and weather is an issue...