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Thread: Price reductions for low spec wheat

  1. #1
    Seat Right Back
    Guest

    Price reductions for low spec wheat

    Loading 4 loads of wheat tomorrow morning , this is due to my great foresight from early june when I thought there was no way I would squeeze my huge harvest into our limited grain storage ,

    so off down the road it wll trundle at about 150 / ton

    but I have just been told today to be ready to hear of deductions of around 30 squidlies a ton as it has a spec weight of 62 to 63

    tis turning around to be a real shit year me thinks

  2. #2
    bob k
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Seat Right Back View Post
    Loading 4 loads of wheat tomorrow morning , this is due to my great foresight from early june when I thought there was no way I would squeeze my huge harvest into our limited grain storage ,

    so off down the road it wll trundle at about 150 / ton

    but I have just been told today to be ready to hear of deductions of around 30 squidlies a ton as it has a spec weight of 62 to 63

    tis turning around to be a real shit year me thinks
    30 deduction and the contract is 50 below trade harsh or what.

  3. #3
    The Shootist
    Guest

    Re: Price reductions for low spec wheat

    Even more annoying is the fact that I believe they will be so short of wheat come next spring they will have to take anything. If it's any consolation I sold 90 tons at 140 for the very same reason!!!!

  4. #4
    muppetdodger
    Guest

    Re: Price reductions for low spec wheat

    It is high time the industry looked at treating wheat like OSR, ie when you send it in dry and good quality you get a good premium, and on the reverse if it is lower quality you receive a sensible deduction. Some of this years deductions are taking the proverbial, and I think the merchants will have it come back and bite them on the arse, cos when it get's very short farmers will say sod off unless you take it with no/reasonable deductions. The mills don't even contact the merchants now; they just lop off a random amount and say tough sh**.

  5. #5
    MrNoo
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by muppetdodger View Post
    It is high time the industry looked at treating wheat like OSR, ie when you send it in dry and good quality you get a good premium, and on the reverse if it is lower quality you receive a sensible deduction. Some of this years deductions are taking the proverbial, and I think the merchants will have it come back and bite them on the arse, cos when it get's very short farmers will say sod off unless you take it with no/reasonable deductions. The mills don't even contact the merchants now; they just lop off a random amount and say tough sh**.
    +1

  6. #6
    Mayo
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by muppetdodger View Post
    It is high time the industry looked at treating wheat like OSR, ie when you send it in dry and good quality you get a good premium, and on the reverse if it is lower quality you receive a sensible deduction. Some of this years deductions are taking the proverbial, and I think the merchants will have it come back and bite them on the arse, cos when it get's very short farmers will say sod off unless you take it with no/reasonable deductions. The mills don't even contact the merchants now; they just lop off a random amount and say tough sh**.
    In a normal year, why would I pay a premium for higher spec weight wheat? I can just buy normal spec stuff for less money.

    You'll never get them to play ball on moisture either because its just a pain in the ass to have to intake corn that is high on moisture, it can bridge in bins or block your plant, never worth the hassle.

  7. #7
    bluedriver
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Seat Right Back View Post
    Loading 4 loads of wheat tomorrow morning , this is due to my great foresight from early june when I thought there was no way I would squeeze my huge harvest into our limited grain storage ,

    so off down the road it wll trundle at about 150 / ton

    but I have just been told today to be ready to hear of deductions of around 30 squidlies a ton as it has a spec weight of 62 to 63

    tis turning around to be a real shit year me thinks
    We have been told 21/ton for 62 bushel, bit more than the 1 a point I thought it was

  8. #8
    harrisonion
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Seat Right Back View Post
    Loading 4 loads of wheat tomorrow morning , this is due to my great foresight from early june when I thought there was no way I would squeeze my huge harvest into our limited grain storage ,

    so off down the road it wll trundle at about 150 / ton

    but I have just been told today to be ready to hear of deductions of around 30 squidlies a ton as it has a spec weight of 62 to 63

    tis turning around to be a real shit year me thinks
    Local merchant told me it was 1 per Kg under spec.

  9. #9
    Clive
    Guest

    Re: Price reductions for low spec wheat

    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??

  10. #10
    Renaultman
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??
    I know someone that has done this with all of his, at a very considerable cost.
    I must admit, the thought has crossed my mind and it's tempting, my merchant rep is being very conspicuous by his absence this week. Having broke my neck to get Nov/Dec contract stuff cut dried and loaded for them as they were short of wheat I'm not that impressed.

  11. #11
    peasantman
    Guest

    Re: Price reductions for low spec wheat

    Its a pound a point for the first so many points then it really ramps up as you drop points. By the time you get down into the low 60s I think it is something like 3.50 a point. I think we took a 43/tonne deduction on our worst load which was 59.5 kg/hl and we had sold it forward at a low price to make room at harvest time. Sickening and disastrous. But just have to move on.

    Still at least there are plenty of foreign boats queuing up for this light wheat and in the main, the starting price for the rest of our loads is a good one and the bushel weights, although not brilliant are nearer 70 than 60.

  12. #12
    Mayo
    Guest

    Re: Price reductions for low spec wheat

    Spanish usually more than happy to take iffy wheat or barley, even non-assured. Always thought they were putting it into ethanol but not really sure.

  13. #13
    czechmate
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??


    And/or cleaning in a batch dryer to improve the weight. We found 60 up to 70 quite easy, just getting to 72 without too much waste will be the challenge come November.

  14. #14
    peasantman
    Guest

    Re: Price reductions for low spec wheat

    What annoys me, is we get severely penalised for low bushel weight, even though protein was 12%, when I know that feed mills add all sorts of bulking materials, like straw to pad out the feed they supply to farmers. i know this becasue my cousin worked as a formulator for national feed company for many years.

    Good job then that we have the Spanish who are perhaps a bit more imaginative with what they can use.

    And when the bushel weights high and the moistures low, we don't get a bonus. Its a one way street with the merchants.

    I hope, that when all the wheat has been exported, and there is nothing left here that is good enough for our feed mills they get done over as badly as we have been, and have to buy expensive rubbish from abroad.

    One things for sure. I am never selling forward again.

  15. #15
    peasantman
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??
    Adding a gamble on top of a gamble. Better I think to take the medicine.

  16. #16
    Clive
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by peasantman View Post
    Adding a gamble on top of a gamble. Better I think to take the medicine.
    maybe but selling it at 150 was a gamble

  17. #17
    Richard
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??
    By the amount of high spec wheat arriving at local docks I doubt it will get better, normally tractors and lorries are queuing to load boats at this time of year.

  18. #18
    peasantman
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    maybe but selling it at 150 was a gamble
    It was a gamble. The problem is I don't have the ability to predict future prices and don't, after this harvest, have money to cushion the impact of another wrong call. So I am going into "safe mode" this year. At least if I fulfill the contracts I have made now, I know the size of my losses and they are sustainable. If I buy back, and then for some reason wheat prices creep down (yes it's unlikely but so were many things that happened this year) then I am hit with a double whammy of unknown proportions. I have had enough of that. New grain store is completed now so next year I don't need to shift anything at harvest time.

    I will be wrong again no doubt but will sleep better at night.

  19. #19
    muppetdodger
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Richard View Post
    By the amount of high spec wheat arriving at local docks I doubt it will get better, normally tractors and lorries are queuing to load boats at this time of year.
    I refer to what I said earlier. By get better he means come Springtime, the mills will be desperate as it runs out and they will have to reduce these clawbacks or the farmers will tell them to stick it!

    And Mayo, I understand the moisture thing, but not the specific weight. If you say at 68 kg a wheat is worth a 4 claim, then a 76 kg wheat must be worth a 4 premium, or does the specific weight only matter up to 72, and anything above that is the same quality. I think not! There is no arguement against that I'm afraid.

  20. #20
    Clive
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by peasantman View Post
    It was a gamble. The problem is I don't have the ability to predict future prices and don't, after this harvest, have money to cushion the impact of another wrong call. So I am going into "safe mode" this year. At least if I fulfill the contracts I have made now, I know the size of my losses and they are sustainable. If I buy back, and then for some reason wheat prices creep down (yes it's unlikely but so were many things that happened this year) then I am hit with a double whammy of unknown proportions. I have had enough of that. New grain store is completed now so next year I don't need to shift anything at harvest time.

    I will be wrong again no doubt but will sleep better at night.
    fair enough logic - I can see forward sales will be rather unpopular for a few years with many - I bet much of the 2012 harvest was sold circa 150/t

  21. #21
    cider
    Guest

    Re: Price reductions for low spec wheat

    12 deducted for 64 bushel wheat i'll be pleased to see the back of this year.
    Strangely oats ok though at 51

  22. #22
    stroller
    Guest

    Re: Price reductions for low spec wheat

    I gave up selling forward several years ago after being shafted by a certain independent grain trader, I think there has only been 1 year in the last 5 that I have been worse off.

  23. #23
    Willscale
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??
    This is what I've done. Rock and hard place really. Cost a lot of money but basically bushel weight around 62 - the mill currently in a strong position because of forward sales etc. anyway. They don't really want low bushel weight stuff but attitudes might have to change a bit later on.

    Basically got to look to try and get 200+ for low bushel weight stuff some time between now and next april. Bit of a gamble but what do you do?

  24. #24
    Crazybull
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by muppetdodger View Post
    I refer to what I said earlier. By get better he means come Springtime, the mills will be desperate as it runs out and they will have to reduce these clawbacks or the farmers will tell them to stick it!

    And Mayo, I understand the moisture thing, but not the specific weight. If you say at 68 kg a wheat is worth a 4 claim, then a 76 kg wheat must be worth a 4 premium, or does the specific weight only matter up to 72, and anything above that is the same quality. I think not! There is no arguement against that I'm afraid.

    There are premiums this year for anything over 70kg in the midlands

  25. #25
    Joules
    Guest

    Re: Price reductions for low spec wheat

    Just taken a call from a haulier who is supposed to be bringing us a load of bulk straight feed. He has put delivery back by 3 days as they are getting so much wheat rejected at Immingham - mainly low bushel weights by the sound of it - he is having a logistical nightmare re-homing it and his delivery/collection schedule is all over the place.

  26. #26
    Big Vern
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by cider View Post
    12 deducted for 64 bushel wheat i'll be pleased to see the back of this year.
    Strangely oats ok though at 51

    w****x grain have rather graicously taken our "chicken scrapings to fill the contracts.. unfortunately the habergs are 53 and lower... apparently oakley and viscounts have been hard hit... guess what we had.... deductions are massive but at least they have let us fill most of the contracts.. still owe a bit though.. on the bright side they are well impressed with the SB barley and seem keen to have some of that...

  27. #27
    JCB_3230
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by muppetdodger View Post
    It is high time the industry looked at treating wheat like OSR, ie when you send it in dry and good quality you get a good premium, and on the reverse if it is lower quality you receive a sensible deduction. Some of this years deductions are taking the proverbial, and I think the merchants will have it come back and bite them on the arse, cos when it get's very short farmers will say sod off unless you take it with no/reasonable deductions. The mills don't even contact the merchants now; they just lop off a random amount and say tough sh**.
    + another

  28. #28
    JCB_3230
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by bluedriver View Post
    We have been told 21/ton for 62 bushel, bit more than the 1 a point I thought it was
    I have heard of 40 deducted for 59 bushel not my wheat.. 9 off is my highest so far

  29. #29
    Clive
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Willscale View Post
    This is what I've done. Rock and hard place really. Cost a lot of money but basically bushel weight around 62 - the mill currently in a strong position because of forward sales etc. anyway. They don't really want low bushel weight stuff but attitudes might have to change a bit later on.

    Basically got to look to try and get 200+ for low bushel weight stuff some time between now and next april. Bit of a gamble but what do you do?
    the gamble will pay off IMO Will

  30. #30
    JCB_3230
    Guest

    Re: Price reductions for low spec wheat

    Quote Originally Posted by Clive View Post
    have you considered buying out of the contract and chancing your luck putting it into store until march maybe ?

    I think once harvest is over and quality is known nationally things might just get better ??
    In what way do you think things will get better?

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