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Hobbyfarmer
Honored Advisor

Re: Warren Buffet's extortion charge

Might be why they are planting way less corn this year...ya suppose?

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rayjenkins
Veteran Advisor

Re: Warren Buffet's extortion charge

Yes, hardnox........freight is just another component of the equation to be managed...and if you get out of sync the wrong way, you either have to buy your way out, or plan on hanging onto the corn for awhile....

 

I wouldn't cry too many crocodile tears for anyone involved (including our own grain division)

 

not all rail freight is traded this way, but there are pools where the various grain businesses bid on car freight

 

just another market with risk/opportunity

 

that Gavilon location is only 40 cent truck ride away from Eddyville.....if they were really as desperate as they touting to Hobby, they would be on the phone talking with us.....but they just called this morning and all they wanted to talk about was selling some corn they have bought in some location trib to Eddyville......and it sure wasn't much volume!

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Hobbyfarmer
Honored Advisor

Re: Warren Buffet's extortion charge

Ray; what a difference a few pages turned on a calendar make.

 

Two-ish years ago there were, (I think over 50 engines sitting for months on a side track in Creston Iowa's rail yard with nothing to do.

 

$13 beans bought a lot of beans day before yesterday. They need shipped in a timely manner.

Cash prices paid and basis levels will reflect problems with transportation eventually.

 

That is why last summer when we were still in the $6 corn range the interior of Brazil corn market was $2 and still no buyers. FREIGHT was just eating their lunch.

 

Building all the poultry and hog feeding/growing facilities and grain processing plants here in the grain production area is just a no brainer in my opinion. I'm thinking the Afton, or Afton Junction, Iowa area needs a sweetener or E plant too. It is 40+ miles to the next nearest one and I don't see the cows coming back in the near future.

 

We raise so much down here that harvest is still going on. Another end user or processor would be nice.

 

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Hobbyfarmer
Honored Advisor

Re: Warren Buffet's extortion charge

Ray and others I wasn't trying to infer they were desperate. Just passing on the current way things are if you needed an extra train spotted that wasn't pre booked.

 

A surge in prices did bring a surge of beans into the market here locally. Mine are close to a price that will unload the bins and fill several of those train cars or fill a convoy of trucks to Bunge, CB.

 

We do not have the market prices you have in Eddyville, If we did I would load corn out of here too.

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rayjenkins
Veteran Advisor

Re: Warren Buffet's extortion charge

you should have a meeting and volunteer to be the first guy to put $100 G's into the pot

 

you guys kill me.....the first time there is even a whiff of extra supply, the world is coming to an end...

 

give me a break!!

Hobbyfarmer
Honored Advisor

Re: Warren Buffet's extortion charge

I think you are putting words into my posts that are not there.

 

I didn't know Cargil, Bunge, ADM, Valero, Gavalon,etc were doing surcharges for locating plants. Thanks for the heads up on that one.

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pritchh
Senior Contributor

Re: Warren Buffet's extortion charge

crude oil traffic keeps exploading..

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