Market Report: June 12, 2024

Buyers in local markets throughout Alberta are watching the prices on these two commodities closely.

While several buyers have scaled back operations or switched to corn as an alternative, other buyers are optimistic about the prices in the next couple of months. It’s early, but projections for this year’s crop are sound in most areas. Between new crop and the abundance of crop held back in hopes of pricing highs, many buyers believe that there will be more crop than demand. New crop target prices by larger companies are starting to come out and are low in comparison to current crop prices. New crop and old crop will be competing soon, and it will be to the buyer’s advantage.

The fear of drought had many buyers panic buying. Now that those fears have been alleviated, they are starting to dig in. Several buyers have stated that they don’t mind paying a “fair” price for product but believe the high prices of the last few years are unsustainable. While the futures can give indications on grain markets, these markets are heavily impacted by the buying and selling habits of those in that ecosystem. If too many buyers in any area switch to corn, the entire area could experience a shift in the flow of the producer’s grain.

Hopefully, before that happens, the sellers and the buyers can come to an agreement on what a “fair” price is. We are all one community, and we want farmers on both sides to succeed.

We are here to assist both the buyers and the sellers with finding the best opportunities in their areas.

Because Farming is Forever,
Carmen Rausch-Harper

At Agfinity, we value our longstanding relationships with producers and remain committed to providing the best options for your grain sales. Traditionally, we have offered two types of contracts: Broker Notes and Grain Purchase Contracts (GPC). Given the current circumstances, we are focusing on Broker Notes to ensure timely payments and continued success for everyone involved.

Broker Note:

1. We source the optimal buyer for your grain by gathering multiple bids. Once collected, we present them to you for approval on price, delivery timeline, and quantity.
2. The buyer pays you directly for your grain.
3. You will receive an invoice for the brokerage that is above the agreed to net price on the broker note.
4. The brokerage fee can be paid by the buyer, the seller, or split between the two depending on the broker note terms.
5. If it’s a delivered freight by Agfinity, the seller pays for freight.
6. Payment terms typically range from 10 to 21 business days, depending on the buyers’ terms.

We understand that this is a challenging time, and we are committed to overcoming it together. By trading with Agfinity through Broker Notes, you not only benefit from optimized grain sales but also contribute to a cooperative effort that ensures mutual success.