Capital - 3/11/2026 11:09
Green Acres Guy - 3/11/2026 08:59
Your bins only capture the basis and carry between months. The carry generally is just shrink and interest costs, if you are lucky, so the bin can capture basis. They do not capture price improvement because increases on the board. You can just buy paper contracts to speculate.
Ok, if you want to get technical on this debate-consider the advantages of on farm storage vs haul to market at harvest:
1
) Harvest logistics-can harvest when the beans are ready and go as long as I want to go
2
) Can harvest "wet" beans
(often at 15-16%
) with no moisture dock-get more in the tank and can blend off with drier ones
3
) Can bridge tax years with commodities stored on farm
4
) Can take advantage of price improvement without the necessity of a margin account
5
) Keeps the final delivery market open.
I'm sure there are other advantages that I haven't listed, but bins are much more valuable then just basis improvement and carry capture.