N.W. Ohio | Bengal Stripes - 9/5/2017 21:08
Z/N at 27 cents is over 12% annualized. Tell me where else I can get that?
Bengal, I like your way of thinking on that. Back in the day when I actually was a decent cash marketer, I would look at the carry and figure 2 cents/month for electricity/risk of grain going out of condition, ect. Then after I deducted that cost from the carry I'd figure how much interest the market was paying me. In your example you could charge 16 cents for the bin and make close to 5% interest for eight months. I can borrow that money for somewhat less than that on my operating loan if I'd have to and have the bin earning money for 8-9 months. Not gonna get rich doing that, but certainly shouldn't go broke either. |
Timing
