FOB

Persian Gulf disruptions raising both the make of our product and the move.

So there's pressure on the FOB and the cost of goods right now.

Got our arms around it because the category is so healthy that price is, you know, it's always a consideration for the consumer.

But we've been able to stay in the zone of what consumers will pay for performance.

So they are controlling actually what is happening at the destination.

What they are not so sure of is actually what is happening at the origin, right? Because most of them are buying FOB, so they don't necessarily know is everything working as expected, right? So we have set up a system where actually a couple of things are happening.

So as soon as the booking is placed and in the system, we are assigning a container to that booking and the container basically is ready to pick up.

So this customer is now checking what's the dwell time the container is having in that location from a container assignment until the trucker is picking up the container to bring it to the loading facility, right? So how long...

Dressed delivered prices were mainly $3 to $8 higher in Nebraska at mostly $358, and and they were mostly $15 higher in the Western Corn Belt at mainly $3.65.

The five-area direct weighted average FOB live fed steer price last week was $2.87 higher at $2.2706.

The weighted average dress-delivered fed steer price was $8.27 higher at $3.6079.

Choice box beef cutout value was $3.65 higher Monday afternoon at $369.44 hundredweight.

Delivered, duty paid, DDP, to the place of destination.

What we see instead are investors who take an FOB offer from a Chinese port because it looks cheaper at first glance and then discover that the saving comes with a logistic department they don't have.

Under FOB, sea freight, insurance, import clearances, duty, import VAT and the inland transport of heavy, often oversized containers all suit with the buyer, which for a foreign investor means a freight forwarder and customs agent in Poland, an EORI number for the SPV, financing of import VAT and transport damage risk that the supplier can easily dispute.

From today's perspective, though, the key point is different.

Under FOB, the buyer clears the goods for import, so the buyer becomes the importer.

Everything from the previous part, the verification of conformity, the marking, 10 years of documentation, BDO and the passport, lands automatically on your SPV together with extended producer responsibility and the obligation to take those batteries back in 15 years.

Does anyone signing a purchase order FOB Shanghai think about obligations in the year 2041? Well, I don't think so.

They think about the few percent saved on the container price, usually before adding the cost we have just listed.

Oh, just going back to the shipper conversation, and we keep using the word shipper, but I think the other demographic that, you know, I don't know if we want to call them a shipper or a receiver, whatever you want to say, but the, I don't know.

The body that is ultimately ordering FOB, right? So if you are a receiver, if you're bringing product in, the other thing you might want to know is, hey, I know I'm sending my truck into this shipper.

I want to know that they're loading the right truck too.

It's not just the broker.

We are seeing also that basis prices are starting to prop up a little bit, in particular wheat and corn, which has kind of bore the brunt of the future selling.

Both of them, at the FOB offers, we've seen corn and wheat move higher than And in the interior, basis prices are also moving higher.

So I think that's part of the support that we saw in corn yesterday, which jabbed the August low, but then closed above it.

And again, closed up one and 10 off the low.

And that's

because Abercrombie did everything FOB.

Right.

Is that why? Correct.

I actually didn't even know that was an option.

So I did.

I bought everything FOB.

And then I had a freight account and paid all of that because you also have to have an import certificate.

So a lot of that CME jump had to do with really the number of animals that were sold.

And we think about... kind of where the cattle complex was, you know, cattle started trading in, you know, 121 to 122, uh, on that five area weighted average for live FOB and delivered.

And then that dressed delivered FOB was really trading in that from like three 50 to three 52, really, really light trade, uh, throughout this week.

And so the futures complex didn't have a lot of information to trade on.

Uh, ultimately a lot of the movement end up having on, on Friday, we had about, uh, about a little over 13,000 total heads sold on Friday.

We don't have a good measure of.

what it costs per loaded mile.

But one of the ways that we can kind of infer some of that is looking at the price differential between animals that are delivered and FOB.

The price of Brent is stuck around $100.

Brent is quoted FOB, which means free on board, which means that it's quoted without the cost of transportation.

Now, normally, pre-Iran war, It would cost you about $2 or $3 a barrel to ship oil from the Middle East to whatever refinery you wanted to ship it to in Asia or Europe or wherever, about $2 or $3.

So price was $70 before the war, $2 or $3.