| motherlover - 4/2/2024 22:00
Wet bin full of 17-18% corn, it needs to leave before June regardless if I sell right away or not. Dp allows that to happen. Not a lot of bushels. Classifies as a management tool right or wrong. Deliver direct to eplant offset by credit from elevator. Price at time of sale is the same as eplant spot price, so how did I get hosed? I take most of my corn there anyway. The market dictates settlement price, not the date of delivery.
I understand how it makes sense operationally
I dont argue that…..but if you dont think price would be different if it wasn’t utilized at all you are wrong…..it is simple math…….
Elevators can place basis from the short side without having to pay up, because they can use DP grain to ship against the basis shorts……..
It is how elevators make money
I remember one time offering a farmer FREE DP for life…..only catch was he couldn’t sell it in the next 30 days………. I told him what I was doing…..and that he should just sell it versus the Free DP……but he took the free DP on some milo…….. I MADE 3.00 a bushel on it………he sold it a couple years later……..
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