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NE Iowa | Actual shrink on soybeans is 1.18% per point of moisture just like corn. Elevators treat shrink differently on beans and the make a killing doing it. Most elevators have no "shrink" on beans but they deduct 1.5% off the price for every 0.5% moisture over 13%. For example:
14.5% bean scenario:
They deduct 4.5% off the price with no shrink. At 14.5% they were 1.5% over the desired 13%. Actual shrink is about 1.18% per point. So you got paid for 1.77% more bu then you should have had but they deducted 4.5% for a net loss of 2.73%. The 1.5% overage on moisture costs you 2.73% so if beans are $12 a bu that 1.5% of moisture cost you $0.325 per bu in discount.
Elevators are charging $.03/pt for drying on corn but the soybean moisture discount is $.21/pt. Like I said they make a killing off of wet beans. So I would quit at 13.5 percent. | |
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Dumping wet beans at a elevator
