A 3-4 taka margin flips to a 2-3 taka loss, with 100-plus trucks stuck at the port
Demand at the Hili land port halved in four or five days, leaving more than a hundred loaded rice trucks unsold and turning a 3-4 taka per kg margin into a 2-3 taka loss.
Importers bringing rice through the Hili land port in Dinajpur had been making 3-4 taka per kg. Demand then halved within four or five days and more than a hundred loaded trucks stood at the port with no buyers. Within two days coarse Swarna fell 2 taka to 51 per kg, medium BRRI-28 fell 2 taka to 58, and fine Shampa Katari fell 3 taka to 67. The rice had already been paid for, so it now has to go at a 2-3 taka per kg loss. Arrivals normally run at 50-70 trucks a day and sometimes over a hundred; across the period 2,694 trucks carrying 109,816 tonnes had come through. In bulk trading the whole risk sits in the few days between paying and selling.
Lessons
- 1.A 3-4 taka margin becomes a loss on a 2-3 taka price move: thin-margin bulk trading leaves no room for a turn
- 2.Goods already paid for cannot be unwound; the risk lives in the days between payment and sale
We published this with the person's permission, without revealing who they are.
Discussion
Nobody has written anything yet. You can be the first.