|Our country was developed by individuals in business, let us keep it that way. V.T. Twomey, founder Twomey Company 1945.||
About bids on the Web 02/05/10 10:04:14 AM
Our grain merchandising (Company Directory) hours are 8:00 A.M. to 4:00 P.M. including the noon hour on days that the Chicago Board of Trade (CBOT) grain markets are in full session. Grain bids are only good or firm for the moment they are given. The bids on this web site are subject to change and may be different when you talk to a merchandiser. The bids are calculated off a fifteen-minute delayed quote. Also due to rounding up of futures, the bids on the website may be higher than the actual bid by one cent. The bids are in a constant state of change when the grain futures market is in session (6:00 P.M. to 7:15 A.M. and 9:30 A.M. to 1:15 P.M.) and can change when the market is not in session, due to a "change in the basis" (a change in the relationship between cash grain and grain futures prices) brought about by any one of a number of things that effect grain markets.
Grain bids will be quoted for delivery to inland facilities and the Gladstone (bluff) facility. Grain bids quoted for delivery to inland facilities will be for delivery to Smithshire, Larchland, Yorkwood, Media, and Suez. Grain bids quoted for delivery to the Gladstone (bluff) facility are for delivery only there. Grain directed to our River barge loading facility (at Twomey Company's discretion) will have a transportation adjustment added to the sale price, since the sale price will be for delivery to the Gladstone bluff facility.
If customer sells grain basis our Gladstone bid and then delivers inland or realizes that grain is stored inland, then such sale will have to be adjusted for the market difference at the time of the original sale. It is up to customer to know where delivery will be or has been made.
Customers delivering grain to our Suez Township receiving facility will be charged a 3 cent per bushel transportation charge (based on dry bushels). The transportation charge will be included in the drying charge on our monthly billing statement if stored or will be deducted from the sale proceeds if sold. Customers may pick up stored corn at our Yorkwood location or sell stored corn to Twomey Company at our inland bid. Deliveries to our Suez facility will be for fall delivery. Hours will be posted at the Suez office or you can call the main office at Smithshire for receiving hours.
Under normal market conditions bids may be accepted (sold) immediately. However, if futures markets are too volatile we may have to make our bid subject to getting an order filled in the futures market.
CBOT grain futures trading hours are 6:00 P.M. to 7:15 A.M. for the overnight Electronic trade and 9:30 A.M. to 1:15 P.M. for the traditional open out-cry pit trade. During our merchandising hours when the CBOT is not in session our bids are generally based using the CBOT settlements as the benchmark. The actual futures market settlement prices for the day are determined and announced by Chicago Board of Trade officials usually between 1:30 P.M. and 2:00 P.M. We will have bids prior to the settlements based on the closing range. Our cash bids can change through out the afternoon depending on changes in the basis. Bids the following grain-marketing morning can change depending on what takes place during the overnight trading session.
The morning of a government crop report (7:30 A.M. release), there usually are no bids available until the report is issued and interpreted.
When bearish news comes out when the grain futures markets are closed, the processors and exporters sometimes drop out of the market or more often seek protection on what they purchase by lowering their bids. If you, the producer, think the protective bids have been lowered more than enough to offset the bearish news, you can assume the risk by waiting for the next grain market opening
We are generally unable to take advantage of special bids for immediate delivery to processors and terminals during harvest since our truck fleet is normally committed to moving grain already sold or to warehouses for storage.
We are not usually aggressive bidders for the January or February position on either stored or country grain because we cannot ship during that period due to the Mississippi River being closed.
We have a fall delivery and January payment contract that saves the customer the cost of storage and is basis 15.0% moisture and drying rather than 14.0% for stored corn. A January contract also allows us to load corn out before the river closes in the fall and pay for such contracts in early January.
In the winter we may be able to deliver a small percentage of the grain we purchase to markets other than our own river load-out. During these times we quite often experience waiting in line and days we cannot deliver due to road or river conditions which result in extra costs of labor and interest. Since processor and/or river terminals do not compensate us for these extra and unpredictable expenses, their bids need to be discounted whenever such conditions exist.
The problems we experienced trying to deliver grain to river terminals and processors prompted us to build the Twomey Landing (Mississippi River) facility at mile 409.7. The only practical way to move the volume of grain that we store and purchase is through this facility.
The Mid-Mississippi River is generally navigable from March to early December. Therefore, we have an March/opening of navigation bid. We buy only from the producer so that we can normally control and guarantee to receive grain without unreasonable delay (except for reasons beyond our control.) We do not intend to buy more than we can reasonably handle and then expect customers to stand interest expense and loss of man hours due to waiting in line or starting and stopping deliveries numerous times.