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East of Broken Bow | Right now, as in today, March delivery corn is 30 cents over delivery today. If you are the zero risk type, you can just book your corn for spring/summer delivery instead of harvest delivery and 'here' you can pocket 30-40 cents.
If you watch your timing, and work with seasonal trends, and price your corn for delivery on the 'ups' you can do quite a bit better than that.
For example, last year harvest delivery price was about $3.90. January delivery (priced at harvest) would have been about $4.20 ish or so. I sold a bunch of my corn in late March or Early April for July delivery at $4.75. Do I always come out 80 cents ahead? Nope, I kind of got lucky last year, but I'd say it is pretty common to come out 50 cents above harvest low, and 25-30 cents above harvest delivery on a consistent basis. I figure 25+ cents a bushel for my budgeting for what the bins gain me every year, which is generally the basis improvement for deferred delivery over harvest. Many will say that for 25 cents you can't justify putting corn in a bin, which I would say is probably true if that were the only factor involved. In my case, having a place to put the corn, and being able to dry it myself is just as important. I'm a one man show, and I can pick 6-8 loads into my bins on the average day, depending on which field I'm hauling from. Going to the elevator in town, if everything goes good, I can get 4. On days with long lines 2 or 3. This year, when the corn was wet and the elevators were only taking wet corn from 8-12, I could only haul in 1 load of wet, but could follow that up with another 2 or 3 of dry.
Around 'here' the guys with bins were mostly done for a week or two. Very few guys hauling to town are done, and the guys with baggers are finished harvesting, but now have 19% moisture corn in bags to deal with, and I'm not sure how that will work out for them, hopefully all will be good, but bags are getting common enough around here the deer and coons have learned to tear them open.
So long story short, from a pure price gain standpoint, I would say bins are worth 25cent or more most every year, 50 cents or more from time to time, but from a being able to harvest perspective, at least around here, they are worth far more than that. | |
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Whats everyone shoot for on grain bins making per bushel?
