KS and NE in eastern 3rd | Sat - 3/25/2015 15:00
"You pay for one every 3 years, you just don't write the check"
This is a common miss-conception by some/many that own bins.
Yeah there great to have but at times you should sit empty.
YES 2010 and 2011 it payed big time.....
The last 3 years 2012/13/14 it HAS NOT payed to put grain in the bins from what one could have forward contracted for.....
Even with this years buckish rally since last fall.....
On basis improvement by being able to haul to a better market I gain 30 to 50 cents. Nobody wants to drive 40 miles to wait in line at and E-Plant during harvest. You can still forward sell and use the bin as a temporary holding area to move grain later. You can also forward sell for march delivery and pick up some carry on top of the basis improvement. The difference between my local harvest basis and the market I will be delivering to here soon is over 80 cents. You could sell the futures at anytime and pick up the 80 cents in basis by having bins. That's how bins pay for themselves every 3 years. |
Basis on new crop corn...
