And The Trophy Goes To

By September 7, 2016Newsletter
 When somebody is buying and somebody is selling, worlds collide. And not in one of those romantic ”
opposites attract” sort of ways… It’s more like two individuals fighting over the last piece of pizza, than two friends sitting down for a candlelit dinner and meeting in the middle of a strand of spaghetti.

 

 “But, Jared… I get along just fine with my buyers.”
 
 I can appreciate that. I’m sure they are very nice! But allow me to first say that we’re quite happy that negotiators typically have a tough time getting along. If buying and selling was like going on a date, a company like Agfinity might not even exist. Which would mean you wouldn’t even be reading this right now. Scary thought, I know!

 

  When somebody wants to receive the most, and the other person wants to give the least, this is a situation that requires mediation. You see, a mediator’s goal is for every transaction to include at least two winners. Allow me to use a case study from last night’s movie-club meeting to better explain.

 

 My friend Jesse loves photography. But he’s not in the business of taking photos for free. So when our other friend Alex invited him to take before-and-after pictures of one of his larger landscaping jobs this summer, a work order was issued, but a price was never set. And how come…? Well, because Alex was buying, and Jesse was selling. And, like two starved bulls in a pizza shop, they just charged into the situation. But when the last photo had been taken, and one remaining piece of pizza looked upon them in ambiguous hesitancy, they both knew that a bill needed to be paid. But for how much?

 

 In steps Jon, our hotelier friend.

 

 “Jon, I think I’ve screwed up,” Alex confided as Jesse stepped out to take a work call.
“I have no idea how much I should be paying for Jesse’s pictures, and I don’t want to offend him… and I also don’t want to overpay and embarrass myself in front of Jared!”
 
 “This,” Jon began, after a few seconds of pondering,
“has an easy solution.” And by the time Jesse got back, a piece of paper had been torn into two, and two pens were waiting on opposite sides of the coffee table. For a dramatic, disarming effect, Jon even directed his bright and bendy floor lamp toward us, giving his living room a nice, interrogative atmosphere.
“Alright, men,” Jon continued,
“I want you to write down the price you think this job deserves. If your both mostly in agreement, I will set the price for the photos. If you are too far apart, I won’t judge either one of you – I’m the mediator and your numbers are safe with me. – But I will ask you to jot down new digits, and we’ll try this again.”
 
 “You really want to do this…?” Jesse laughed. Alex avoided eye contact, wrote a number down, and passed his paper to Jon. Still sniggering, Jesse grabbed his own pen, deliberated for a few seconds, and passed the paper to Jon, who quickly took it back to his mediation room, a.k.a. his kitchen island. Before long, Jon’s face lit up like a pumpkin on Halloween.
“Guys! We have ourselves a deal! The price is $425.”
 
 And just like that, instead of one of our friends being a loser that evening, both had risen as champions. Mediation takes what both parties know to be true:
how many pieces of pizza had been devoured; if the recipient was satisfied by the quality and speed of service; and most importantly, what each party is expecting, but might be too afraid to come right out and demand, and ultimately connects them in the middle. But, still not in that ooey-gooey,
Lady and the Tramp kind of way.

 

 Mediation determines a good-to-fair value for all parties involved. But the funny thing about Alex, Jesse, farmers and grain buyers alike, is that meeting in the middle is not as satisfying when you feel like you could have taken a bigger piece of the pie…

 

“So, you would have been happy with just $400 then?” Alex laughed.
“Well… I would have been happier taking your offer of $450,” Jesse chuckled.

 

 There you have it folks. Winners and losers! Give us a call this harvest, and we’ll give you a grain pricing trophy or something. And not just one of those trophies that everyone gets just for showing up. A nice one! Because you’ve earned it.  🙂


Because Farming is Forever,
Jared Seitz

 

Market Report –

Tracy Green
Barley
: Current barley bids around $3/bu delivered Edmonton area and $3.30-3.45/bu delivered Lethbridge. With growers needing bin space and selling at current levels the price could be pressured further into October and we may not see a recovery until maybe November. Buyers are still paying slightly higher prices for old or new crop barley that is in the bin and ready to deliver. Have any!?
 
Wheat: Quality remains a question mark for wheat this year, which could mean more pressure on the feed market.  Buyers are still paying better for old or new crop feed wheat that’s dry and in the bin and available to load right away, rain or shine. Pricing further out will get you about a nickel carry per month, but make sure you know your bushel weight, moisture, vomitoxin, ergot and protein levels ahead of time!
 
Oats: Prices remain much the same and we still have homes available for 2, 3 and 4CW oats for September delivery.  Send us a sample of your new crop oats so we can shop around for the best price.
 
Canola: DLVD Crush plant and local bids came off slightly pressured by CDN dollar gains and are now ranging from $9.60-9.90/bu delivered Sept-Dec. Monitor your bins regularly to ensure the integrity of your product this year!
 
Peas: Still difficult to find movement off combine for yellow peas with many buyers not taking delivery until the new year. But with India in a drought situation, this could mean more demand in the near future for yellows. Current yellow bids at $7/bu delivered.  Green pea bids heard at $7.00-7.75/bu delivered. Some buyers looking for Nov-Feb delivery, however quicker movement is still available.

 

Send us your samples!
Mail to: 3-5400 50 Street, Stony Plain, AB  T7Z 1B7
The Buyer Brief
Joseph Billett
 
Feedlots continue to see red.  Since August 2015, cattle feeding losses appear to range between $250-350 per head.  U.S live cattle futures are near their lowest levels in 6 years.  Many feedlots are struggling to run empty on feed grain and are buying as needed while the price drops. A lot of buyers are also only in the market for next week, are getting covered quickly, and then are waiting until the price comes off the following week.  With more harvest ahead of us than behind, buyers are about as bearish as it gets!
 
 
(AOG = Act of God)
 
Feed Barley –
Sept $2.45-2.60/ bu Oct $2.60/bu Nov-Dec $2.62-2.65/bu Jan-Mar $2.75/bu April-May $2.00/bu

Feed Wheat –
Quick Movement $4.25-4.50/bu Sept-Oct $4.00-4.30/bu
(Call or email for #1 HRS pricing)
2CW Oats/Pony –
September $2.25-2.35/ bu, Oct-Dec $2.35/ bu Jan-Mar $2.40/bu
3CW Oats/Good quality Feed –
Sept-Oct $2.15-2.25/bu
Feed Oats (Lower quality) –
September $1.60/bu
#2 Green Peas –
Sept-Feb  $7.00-7.15/ bu (Max 3% Bleached)
#2 Yellow Peas –
Sept $6.35-6.37/bu
Oct-Dec $6.37-6.50/ bu Jan-Mar $6.60-6.70/bu
Feed Peas –
Sept $5.35/bu
Oct $5.45/ bu

Feed Faba Beans –
Sept-Oct $5.00/bu
 
Feed Barley –
Sept $2.60-2.75/bu Oct $2.65-2.75/bu Nov-Dec $2.75-2.80/bu Jan-Feb $2.80-2.90/bu Mar-April $2.90-3.00/bu
Feed Wheat –
Quick Movement $4.55/bu, Sept-Oct $4.27-4.40/bu Nov-Dec $4.40-4.50/bu
(Call or email for #1 HRS)
2CW Oats/Pony –
September $2.30-2.45/bu Oct-Dec $2.30-2.45/bu Jan-April $2.45-2.60/ bu
3CW Oats –
Sept-Dec $2.20-2.35/bu
Feed Oats –
September $1.55-1.65/bu
#2 Green Peas –
Sept-Dec $7.35-7.40/bu/bu (Max 3% Bleach)
#2 Yellow Peas –
Sept $6.50/bu Oct-Jan $6.50-6.75/ bu
Feed Peas-
Sept-Oct $5.25-5.35/bu
 
Feed Barley –
Quick Mvmt $2.80-2.90, Sept-Oct $2.75-2.85,
Nov-Dec $2.90/bu, Jan-Feb $2.95-3.00/bu, Mar-April $3.10
Feed Wheat –
Quick Movement $4.60-4.75/bu
Sept-Oct $4.55-4.60/bu Nov-Dec $4.65-4.70/bu
(Call or email for #1 HRS pricing)
2CW Oats/Pony –
Sept-Dec $2.40-2.45/bu Jan-Mar $2.50/bu April-May $2.55/bu June-August $2.60-2.65/bu
3CW Oats –
Sept-Dec $2.30-2.35/bu
Feed Oats –
Sept-Oct $1.80-1.85/bu
#2 Green Peas –
Sept-Dec $7.35-7.40/bu (Max 3% Bleach)
*Call or email for deductions on peas testing above 3%
#2 Yellow Peas –
Sept $6.50-6.60/bu
Oct-Jan $6.60-6.75/bu
Feed Peas –
Sept-Oct $5.20-5.25/bu
 
Feed Barley –
Quick Mvmt $2.90/bu, Sept-Oct $2.85/bu,
Nov-Dec $2.95-3.00/bu, Jan-Feb $3.10/bu, Mar-April $3.15/bu May-June $3.20/bu
Feed Wheat –
Quick Movement $4.60-4.75/bu, Sept-Oct $4.60/bu Nov-Dec $4.65-4.70/bu
(#1 & #2 HRS Wheat call for up-to-date pricing!)
2CW Oats/Pony –
Sept-Dec $2.43-2.50/bu, Jan-Mar $2.55-2.60/bu April-May $2.60-2.65 June-August $2.65-2.70
3CW Oats –
Sept-Dec  $2.33-2.40/bu
Feed Oats –
Sept-Oct $1.80-1.90/bu
#2 Green Peas –
Sept-Dec $7.30-7.35/ bu(Max 3% Bleach)
*Call or email for deductions on peas testing above 3%
#2 Yellow Peas –
Sept $6.50-6.60/bu, Oct-Jan $6.60-6.75/bu
Feed Peas –
Sept-Oct $5.00-5.15/bu
Feed Barley –
Sept-Oct $2.70-2.75/bu, Nov-Dec $2.80-2.85/bu, Jan-Feb $2.95-3.00/bu, Mar-April $3.02-3.05/bu
Feed Wheat –
Sept-Nov: $4.25-4.40/bu
(#1 & #2 HRS Wheat with good protein? Call for pricing!)
2CW Oats/Pony –
Sept $2.30-2.40/bu
3CW & Feed Oats –
Sept $2.10-2.20/bu
#2 Green Peas –
Nov-Dec $6.45-6.50/bu (Max 3% Bleach)
#2 Yellow Peas –
Jan-Feb $6.50/bu
Feed Peas –
$4.90-4.95/bu
Feed Fabas –
$4.90-4.95/bu
 
Feed Barley –
September $2.90-3.00/bu Oct $2.85-2.90/bu, Nov-Dec $3.00/bu, Jan-Feb $3.10/bu Mar-April $3.15-3.20/bu
Feed Wheat –
Quick Movement $4.65-4.75/bu, Sept-Oct $4.55-4.65/bu Nov-Dec $4.70/bu
Call or email for #1/2 HRS
.
2CW Oats/Pony –
Sept-Dec $2.35-2.40/bu, Jan-Mar $2.40-2.45/bu, April-May $2.50/bu June-August $2.60/bu
3CW Oats –
Sept-Dec $2.30-2.35/bu
Feed Oats –
Sept $1.90/bu
#2 Green Peas –
Sept-Dec $7.15-7.20/bu  (Max 3% Bleach)
*Call or email for deductions on peas testing above 3%
#2 Yellow Peas –
Sept $6.50/ bu, Oct-Jan $6.50-6.75/bu
Feed Peas –
Sept-Oct $5.00/bu
 
Feed Barley –
Sept-Oct $2.75-2.85/bu, Nov-Dec $3.00-3.05/bu, Jan-Feb $3.10-3.15/bu Mar-April $3.15-3.20/bu
Feed Wheat –
Sept-Nov: $4.30-4.45/bu
2CW Oats –
Sept $2.40-2.45/bu
3CW Oats –
Sept $2.20-2.35/bu
Feed Oats –
Sept $1.85-2.05/bu
#2 Green Peas –
Nov-Dec $6.70/bu (Max 3% Bleached)
#2 Yellow Peas –
Jan-Feb $6.70/bu
Feed Peas –
Sept $4.90-4.95/bu
Feed Fabas –
Sept $4.90-4.95/bu
 
Feed Barley –
Sept-Oct $3.05-3.10/bu Nov-Dec $3.15-3.20/bu, Jan-Feb $3.20-3.25/bu, Mar-April $3.25-3.30/bu
Feed Wheat –
Quick Mvmt $4.60-4.65 Sept-Nov $4.40-4.60
2CW Oats –
Sept $2.40-2.50/bu
Feed Oats –
Sept $2.10-2.25/bu
#2 Green Peas –
Nov-Dec $6.70-6.75/bu (Max 3% Greens)
#2 Yellow Peas –
Jan-Feb $6.70/bu
Feed Peas –
Sept $4.90-4.95/bu
Feed Fabas –
Sept $4.90-4.95/bu
 
Feed Barley –
Sept-Oct $3.00-3.12/bu Nov-Dec $3.15-3.20/bu Jan-Feb $3.25/bu
Feed Wheat –
Sept-Nov $4.40-4.60/bu
2CW Oats –
Sept $2.50-2.60/bu
Feed Oats –
Sept $2.20-2.25/bu
#2 Green Peas –
Nov-Dec $6.45-6.50/bu (Max 3% Greens)
#2 Yellow Peas  –
Jan-Feb $6.45-6.50/bu
Feed Peas –
Sept $4.90-4.95/bu
Feed Fabas –
Sept $4.90-4.95/bu
 
Feed Barley –
Sept-Oct $3.30-3.45 Dlvd or $3.13-3.28 FOB
Nov-Dec $3.50-3.55/bu Dlvd or $3.33-3.38/bu FOB
Jan-Feb $3.60/bu Dlvd or $3.43/bu FOB
Feed Wheat –
Sept-Oct  $4.60-4.70 Dlvd or $4.38-4.48 FOB
#2CW Oats-
Sept-Nov $2.50-2.60 Dlvd or $2.38-2.48 FOB
Feed Oats –
Sept $2.30-2.50/bu Dlvd or $2.18-2.38/bu FOB
#2 Green Peas –
Nov-Dec $6.93/bu Dlvd or $6.71/bu FOB
#2 Yellow Peas –
Jan-Feb $6.93/bu Dlvd or $6.71/bu FOB

 

Call today!!!

1-888-969-5552 

Funny Negotiating Skills
CLIENT TESTIMONIALS
 
 “Other buyers 
call me, and I always tell them that the best service I get is from Agfinity, and that you guys are who I market my grain through.”

James Thompson, Millet, AB
 
 “Most of our marketing decisions are based off of your newsletter! We really appreciate you sending it out!”

Phillip & Glenda Collinge, Lloydminster, SK
 
 “I really like the personal touch in the newsletter! Thanks for sending that out!”
Jim Majeski, Camrose, AB

 “I really enjoy working with you guys and the transparent service you provide!”
–  Kurt Boese, Neilburg, SK

 “For the past five years I’ve been dealing with the Agfinity group and what a fantastic group of people they are. From number 1 to feed grain and canola. All the buyers at Agfinity can Make it happen. Fast turn around times on every thing. Movement, payment, and the inbetween  that all of us farmers don’t see or care about. Good job to the Agfinity crew and keep on buying our grain.”
Drann Hogg, Huxley, AB

 
 “Thanks for continuing to send out a newsletter. I read right through it every time, and look forward to crop price updates.”

 Orest Hulowski, Perryvale, AB
 
 “Enjoy reading your newsletter and price updates keep them coming, good job.”
–  Peter L .Gross, Standard, AB
 

 

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September 7, 2016