How is grain booked?

Trucking can work in many ways, buyers may have their trucks or ask Market Master to arrange freight. Often, the producer may prefer to haul his own grain to the end destination.

Examples, a producer is quoted a barley price of $3.80/bu “at the bin.” “At the bin” is also referred to as “FOB farm.” The quote reflects the grain price AFTER any freight costs and less brokerage fees. After producer receives cheque from Buyer, seller pays brokerage of $0.06/bu to Market Master.

Buyer has his own trucks or preferred carrier and pays the freight bill.

Sends cheque, less any freight costs, to Producer:

$205.00 buyer’s gross price
$ 27.50 buyer’s freight cost
$177.50 or $3.86/bu

$177.50 buyer’s gross price
– $ 0.00 buyer’s freight cost
$177.50 or $3.86/bu

$177.50 buyer’s gross price
– $ 0.00 buyer’s freight cost
$177.50 or $3.86/bu
– $0.06/bu

Buyer allows producers to haul directly to location and issues ENTIRE cheque to Producer.

$205.00 buyer’s gross price
– $ 0.00 freight cost
$205.00 or $4.46/bu

$205.00/MT
– $ 0.00/MT
$205.00/MT or $4.46/bu
– $ 0.06/bu

Buyer does not have trucks and prefers freight to be arranged. Buyer sends ENTIRE cheque to Producer:

$205.00 buyer’s gross price
– $ 27.50 trucker’s freight cost
$177.50 or $3.86/bu

$205.00/MT
– $ 27.50/MT
$177.50/MT or $3.86/bu
– $0.06/bu