Posted by NY 986 on October 31, 2010 at 18:33:04 from (69.171.163.124):
In Reply to: Re: Grain contracts posted by Reid1650 on October 31, 2010 at 17:42:23:
If you are lucky the broker will agree to IA Gary's solution but sometimes the broker will expect you to solve the shortage on your own. Are all the inputs (fertilizer, seed , spray, etc.) all paid at this point? Does your agreement with your suppliers call for any debt to be paid for first from the crop proceeds? Are your supplier's names on your checks from the broker along with your own? If the broker tells you that you are fully responsible (that is they will not help you close the gap) do you have the funds to buy the difference in the contract to finish? Again I hope you could agree just to pay the difference in the contract for contract and current cash price for the volume in question but sometimes the brokers don't go for it.
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