dpilot83 - 11/29/2015 19:56
I'm probably going to start using storage quite a bit more for 2016 and beyond. Prior to that most everything was going to town. I believe I need to develop a market routine to keep track of carry and basis if I'm going to effectively use storage.
Right now I'm just envisioning something simple like when I get up in the morning I check the carry on the crops and years I'm interested in (corn and Kansas City Wheat) and then perhaps record carry in a spreadsheet or something. Perhaps once a week or two I would contact the buyers I'm interested in dealing with and I would record basis for the delivery periods I'm interested in as well.
I'm sure that's a pretty crude system and I would imagine there are some of you who have a pretty polished routine. What do you do? Thanks.
Far far from polished here, but I receive the basis bids from a couple different end users via email. When the bids come, I make a mental note of the change of the day (if there was one). At minimum once a week, and daily if things are moving decent daily, I add the values to my historical database of values - creating a price chart much the same as a futures chart and I apply the same type of techniques to the basis chart to get a grasp of the energy levels and probabilities on several different time frames.
For the guys capturing basis and carry: Your daily market routine?
