|
IA | Their standard discount is 1% of your contracted price per 1/2 point of moisture over 15% or in other words 2% of price per point of moisture but no shrink or drying or anything else. Using federal crops shrink rate of 1.2% per point of moisture it is costing you .8% per point vs if you had dry corn.
You will be delivering wet bushels so take that into account. 40,000 bushels dry is roughly 42,550 at 20% because you need to shrink it 6%(1.2x5 points)
You bring them 40,000 dry at $5= 200,000
You bring them 42,550 at 20% sold for $5=191,475
You have no drying cost but also probably a lower basis and get to deal with their unpredictable hours and long lines | |
|
Please educate me on how Cargill Eddyville calculates moisture discount…..
