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Re: N/C corn contracts, what are you guys getting


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Posted by NY 986 on May 14, 2009 at 05:28:22 from (166.217.225.174):

In Reply to: N/C corn contracts, what are you guys getting posted by Dave from MN on May 14, 2009 at 04:31:22:

I'm kind of conservative when it comes to contracting. I like to know my crop is in the ground and have an idea as to potential ( I know most marketing experts recommend a quarter to one third of expected crop ahead). Wish I had the financial versatility to pursue puts and other options.
My biggest issue is the financial soundness of the elevator making the contract. We have had more than a couple go belly up since I have been farming. Elevators here in New York are bonded but I know of plenty of farmers who were short changed in spite of this. A lot of them had to wait many months for any settlement. The fact that a lot of these fellas change the subject when that topic comes up tells me they really got it stuck to. The other issue is when the elevator gets creative to cover its short comings. This means dockage of all types (NO broken kernels/seeds, NO foreign matter, little slack on test weight, color/appearance issues).
I would be interested in hearing others comment to what I said and maybe have more confidence in contracting (more so the people I'm dealing with) based on their opinion.


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