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| Where I sell grain, drying and shrink are figured differently. Drying is so much per point per bushel (question is it wet or dry bushels, I'll have to look at last year's settlement). Shrink cuts the bushels not the cash price based on 1.4% per point removed. 1.18% of that is moisture, the rest is spillage and grinding from the extra handling, and profit for the elevator if they don't spill and grind.
Drying and shrink were based on wet bushels.
So you deliver 100 bushels, at 20%, dry to 15, its shrunk 5 * 1.4 = 7% shrink or 93 bushels dry. Drying cost 2.88 cents per bushel per point, but the local elevator was oversold and looking for corn, they made a special on drying and last I looked are still paying more than CBOT for corn for immediate delivery. At their fall price, drying 100 bushels from 20 to 15% (and the amount of drying depends on whether its for immediate sale or for storage) cost .144 per bushel, 100 bushels $14.40..
So I got paid $7 (your number) for 93 dry bushels, or $651 for the corn and I paid $14.40 for drying so my check was for $636.60
I paid drying and shrink on wet bushels, but sold dry bushels, shrunken from wet bushels.
Gerald J. | |
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Please check or correct my logic/math on grain drying costs at the elevator
