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Veteran Advisor

el cheapo's advice on wheat

well looked at the computer for a while tonight...eyes hurt.....but this is the only thing i can figure out.

 

right now, i'm looking at an 82 cent carry in the market untill next july...even with commerical storage, that

 

gives me 33 cents more....from a better basis and price rise of wheat.....

 

for cash flow...do a loan (you'll have to get your book out for that)

 

only problem is that they are for 9 months...and you'll need to get a warehouse recip...which the local manager didn't

 

know how to do one....he said he just did his first one....around these parts...you must pay the 9 months storage

 

ahead.

 

certainly, the basis will get better in feb/march ?

 

I think eagle eye mentioned that his friend thought we could get up to $5 or better on the boards..so that should

 

pull us up to $4....and maybe then jump out of everything.

 

things would look even better if own storage...but been pricing about $3 a bu...and i have to bolt it all together.

 

I don't know what to say on corn (milo) and beans....nobody will make any quotes other than harvest.

 

kind of makes it hard to preplan.....but......i guess that's what they want.....get the grain as cheap as they

 

can....from the looks of it, best bet for beans is to sell off the combine, and if we can get a pop now

 

maybe lock it in,  lets like zero carry on the board.

 

can has about a 30 cent carry, but how far will that get you...if self storage, maybe, in town, nope. so maybe

 

same thing as beans ??

 

but......is it really fair that a coop does that to it's member owners ?....we all know the answer to that....but

 

really, when it comes to brass tacks....i'm wondering if there is something actually legally wrong, or actionable.

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2 Replies
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Veteran Advisor

Re: el cheapo's advice on wheat

did i do it right ?

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Senior Advisor

Re: el cheapo's advice on wheat

I don't know where you farm so the soybean market is probably quite different.  Here in eastern Iowa there are good markets and one of the best is the river.  It is almost a rule of thumb that one can make decent money paying commercial storage on soybeans from harvest till river close, which for me is usually the first week in December.

 

My point is that for us here it would not be good marketing to sell off the combine.  Store and sell for delivery in last half Nov or before river close will make storage plus a dime or two dimes.

 

My guru on marketing soybeans is SoyRoy Smith who lives in Nebraska.  He posts here in the Marketing Section.

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