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Grain Contract Schemes Occurring In Midwest

Elevators advised not to pay until all grain delivered.

According to the Kansas Grain and Feed Association, alleged grain-sales irregularities taking place in Iowa and Nebraska, involving the sale of soybeans to several farmer-owned cooperatives and independents. In that situation, the sellers contacted elevators that contracted with them in the spring, indicating that they would be unable to deliver the contracted grain. They asked to close the contracts and receive any difference between the contract price and the current market price.

KGFA reported that this week in Minnesota several country elevators in various parts of the state called the Minnesota Grain and Feed Association (MGFA) about DCV Farms, LLC, with a mailing address of 3208 West Lake Street, Suite 72, in Minneapolis. MGFA checked out the address yesterday and found it to be a location of UPS and FedEx drop boxes, but no offices. DCV Farms entered into contracts to sell grain to the elevators. A representative of DCV Farms has now been contacting the elevators and stating that DCV Farms is unable to deliver the entire contracted amount and wants to close the contracts, receiving any difference between the contract price and current market price. Elevators are being advised to not tender payment until all the contracted bushels are delivered to the elevator or feed mill.

Source: Feedstuffs

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