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Advisor
Posts: 770
Registered: ‎10-18-2016

Store In 2017-18?

You can make money storing if you can sell the grain later for more than it cost to store it.

1.  Forward sell and lock in the carry (if there is enough to make it attractive)\

2.  Sell out-month futures contracts and buy them back when they get cheaper

3.  Store grain unpriced in expectation of a price increase.

 

Obviously there is risk to all of these.  I used to sell the carry often but in recent years haven't done it as much.  

 

 

http://farmdocdaily.illinois.edu/2017/09/storing-corn-soybeans-2017.html?utm_source=farmdoc+daily+an...

Honored Advisor
Posts: 5,201
Registered: ‎01-10-2012

Re: Store In 2017-18?

Me thinks you worry it to death.
Honored Advisor
Posts: 5,201
Registered: ‎01-10-2012
0

Re: Store In 2017-18?

Production
USDA July estimate was at 48 bpa beans. Where do you fall on the specturm?
Percentages
60.3174603175 percent 24.2630385488 percent 15.4195011338 percent
60% 24% 15%
(1) (2) (3)
Vote Legend
1) Under 44 bpa 266
2) 45 to 50 pba 107
3) Over 51 bpa 68
Total Votes: 441
Results current as of:
05-Sep-17 10:02 PM

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Advisor
Posts: 770
Registered: ‎10-18-2016
0

Re: Store In 2017-18?

Some people seem to think storage is their only hope for new crop.  Maybe it is.  But one hopes one looks at all the options and aspects before blindly welding the bin door shut.

 

Me?  I typically store but not too long.  I'm usually done in March or April.  Never past June.  Most of it goes in Dec-Jan and has been sold months before.  I have some sold last spring for Jan delivery.  Wish I'd sold more.  Smiley Sad