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Northeast Iowa | I'm doing something dumb.
Commerical rates are killer, and they hit you with an additional point of drying. Drying at 5 cents, and first storage bill at 15 cents for 90 days. That is 20 cents from Oct/Nov to get you through January or February.
The carry in the market is essentially that right now.
Basis here will absolutely not improve. It's -35. I even expect basis to widen to -45.
I did a basis contract today setting it at -35. I will deliver and sell my overrun and re-own the board hoping for a futures bump. I am simply not paying commerical rates and also risking futures deteriorating, I will only risk futures deteriorating.
It is purely a spec play funded by the sales I'll make this fall, and I'll pick my day to sell and pick a day to buy trying to make a few cents each way.
Reserving the right to change my mind if I don't like how the futures market is looking at any time, but this is my plan right now. | |
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So what would your strategy be for storage?
