What work is done on a grain farm throughout the year? At Good in Every Grain, some common questions are about the many jobs done on a grain farm. Do farmers work in the winter? Winter is the time of year where YourFarmers spend a lot of their time planning and preparing for their future year. This is the time of the year where they sell their grain, calculate and purchase seed, fertilizers and pesticides amounts.
They only purchase what they need for the year. This is figured out through soil tests and calculations to only use the right amounts of seed, fertilizers and pesticides.
Farmers will also prepare and maintain their equipment and prep their planting equipment for spring. Farmers will also meet with their accountants, bank managers, grain marketers and agronomists to make decisions for the upcoming year. Lastly, farmers will also attend meetings with fellow farmers and agriculture organizations to see the newest innovations in grain farming.
It is the season for planning, preparation and making business decisions. Spring is arguably one of the busiest times of the year! Farmers will begin planting Ontario grains- barley, corn, oats, soybeans and wheat. Grain comes thru here every day, or at least hopper cars that I believe are hauling grain.
Assume it will be used for animal feed; most people don't know it, but Florida is a major cattle producing state. Farmers are not being charged anything. If a farmer in Somewhere wants to fullfill a put contract by delivering his grain he has to pay the freight to Chicago to do so.
Now imagine that a real buyer wants to buy in the cash market. Regardless of where he intends to take the grain, the most he will pay is the Somewhere price. To make it simple, assume he will pay the freight to his place. He buys FOB origin and the seller gives the railroad a bill of lading that indicates freight collect. Freight collect means that title passes at origin and the buyer pays the actual freight from Somewhere SD to Whereever he wants it.
Our community is FREE to join. To participate you must either login or register for an account. When is grain train season and does it depend on where U live? Order Ascending Order Descending. Member since December posts. Posted by trackrat on Friday, April 3, PM. Member since September 1, posts. On the great lakes its the fall. So what was the big deal about grain moves in Canada in the dead of winter?
Winter Wheat? Posted by tree68 on Friday, April 3, PM. Member since July posts. Member since May From: US 21, posts. Member since October From: Calgary 1, posts. Posted by cx on Friday, April 3, PM. Member since September 7, posts. Posted by ndbprr on Saturday, April 4, PM. Member since August From: South Dakota 1, posts. Member since July From: North Dakota 8, posts. Posted by trackrat on Sunday, April 5, PM. Member since September 5, posts.
You are confusing the existence of a futures contract with the physical presence of the goods. If I own a put for one of the fall months on corn, that does not mean my corn is destined for Chicago for conversion to a final product there. Much more likely it will be used by the beef, pork or poultry producer down the road, the ethanol plant a few miles distant or perhaps taken over to the Mississippi River by the BNSF for a trip down the river and export.
The futures contact did not change that, nor did it afford any measure of physical protection to the crop from insects, vermin or spoilage. Then why would I have wasted my money and time obtaining the put? That's easy. I now have a floor price for my anticipated fall harvest. Since it is a put, I have eliminated the downside price risk while retaining the upside potential. What were the motives of individual or organization who have the other side of that contract?
I don't know and don't care. The CBOE is guarantor of contract performance, which is what matters to me. I have no need to understand the counterparty's motives, much less make any moral judgment concerning them. Um Numbers Running from the s to the s would take numbers from the stock market another number from the weather report and whatever horse finished at the track like Gluefactory finished in last place like 9 at Saratoga.
Seems like the CBOT is the biggest numbers racket in the world. I could not care less if illigal gamblers want to place side bets on stock market numbers.
I am only interested in what investors do for the economy. You are trying to conflate gaming with investing, and I am not buying it. Posted by inch53 on Tuesday, April 7, PM. CSX pull out a string of loaded hoppers yesterday from the elevator out back of us. Then we heard them dropping off a string of empties last night. I hear Little Johns loading them now; most likely the hoppers will be headed for the gulf when loaded.
Farmers round here sale on contract, but will save some to sell when the cash are markets up. All in hopes to sell at the best price. Posted by trackrat on Tuesday, April 7, PM. Member since April From: Northern Florida 1, posts. The CBT price is delivered price to a specified place in the Chicago area. My grain is in southeastern South Dakota. I'm not being charged for the rail transportation to Chicago; the local price is a discount from the CBT price that reflects not only the theoretical rail cost but the elevator's storage, handling and ownership costs.
The local elevator is on a BNSF line and can handle unit trains easily. Roughly 25 miles away there are several comparable elevators served by the UP. Were that not the case, further discounts from CBT price would apply -- the crop only has value if it can be moved to the user.
Member since May From: US 2, posts. Join our Community! Login ». Register ». The post-harvest price increase is not as dramatic for soybeans as corn price unless South America is experiencing weather related issues. As Chad Hart, Iowa State University Extension Economist, noted in his market outlook presentation at the beginning of and in graph B, the price patterns in followed the one in ten-year pattern of increasing as harvest time began.
Expanding drought and a weakening US dollar caused prices of corn and soybeans to increase. A weak US dollar makes US exports cheaper to other countries and can increase the amount of commodities we export. As South America began their harvest, US soy prices dropped slightly in this graph. The last time we had a marketing year with this price pattern was , a year of drought conditions in the US. Seasonal price patterns are just one of several major factors that influence the grain marketing plan.
Understanding normal price patterns allows a farm to make more informed grain marketing decisions and helps them notice abnormal pricing conditions and opportunities. We teach, learn, lead and serve, connecting people with the University of Wisconsin, and engaging with them in transforming lives and communities. Connect with your County Extension Office ». Find an Extension employee in our staff directory ». Facebook Twitter. Feedback, questions or accessibility issues: info extension.
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