Art of Grain Merchandising

5 Things Grain Buyers May Not Tell A Grain Merchandiser

Posted by Roger Gattis

Jul 22, 2014 11:03:16 AM

The reason behind some buyers not volunteering this information to the elevator grain merchandiser isn’t necessarily deceitful; rather, it can be just a matter of the buyer himself not possessing a firm grasp on these issues. Although this seems to be more prevalent when dealing with “wet behind the ears” grain purchasers, it is possible that even someone who has been originating grain for decades doesn’t know all the nuances of our business.


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Topics: Basis Trading, Direct Ship, Spreads, Grain Merchandising

The Greatest Myth of Grain Merchandising

Posted by Jason Wheeler

May 20, 2014 12:09:07 PM

Let’s talk about spreads for a moment – Carry Spreads, Flat Spreads, and Inverted Spreads. It’s no secret that spreads play a big role in how successful a grain merchant is each year. However, while they play a role in success, spreads shouldn’t determine IF a merchant is successful or not.

The prevailing wisdom and accepted consensus of those in the grain business and associated with the grain business is that elevators only make money in years where there is carry in the market. Though it is true that elevators can and do make money in carry markets, it is a myth to believe they can’t make margins in years of flat or inverted markets. In fact, many of our White Commercial customers have had the most profitable years in their history over the last couple of years with no carry in the market. I could give you a pretty extensive list of very successful grain merchandisers that have become so skilled at trading in flat and inverted markets that they would tell you they would prefer those markets over carry markets each year!

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Topics: Direct Ship, Spreads, Grain Merchandising, Inverted Markets