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| My point in the above is that everyone should honor what they agreed to. I would hope most feel the way you do but in the past when the market goes the other way and booking prices are higher, some people have a hard time with paying more. In a grain contract the there is usually a signed document. In the input side deals more with written proposal and oral acceptance. If someone wants to back out on the deal it's pretty hard to stop it. In 2005 the NH3 price dropped considerably after bookings and prepays were made. Retailers had to prepay this product at the price levels at the time of sale/booking. When spring came around and prices were lower you would not believe how many people refused to honor the earlier committment even if they had prepaid money. Somehow the idea was that retailers were somehow trying to screw them over since the current prices had dropped and theirs hadn't. A lot refused to take product so the retailer was stuck taking the loss. The above company should stand behind what they agreed to just like if the market the buyer should. The caveat is that things don't always go as planned, like supply issues. On your side think if prebooked NH3 for spring and it rained and you only were able to plant half your corn. It would not be fair to expect someone to take the tons booked in that case. | |
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Am I getting screwed on this NH3 deal?
