Dougherty, IA | frytownfarmer - 9/7/2015 09:21
Boone is right. Bins are to be used to capture carry and basis. Not to catch a upside swing in the market. If no carry and no basis appreciation then it's no different then playing on the board. Usually the market gives you one of those
Figure up what is going to get you more cents per bu. basis appreciation in beans or carry + basis appreciation in corn.
Anything else is speculation
This is what makes sense to me...
I agree with what you are saying but I question if people actually follow this in "the real world?" Do you actually hedge everything by the time you put it in the bin?
For me, I maybe have 30% of of my stored crop priced for spring delivery, capturing carry and basis appreciation like you mention, but let the remainder sit in storage un-priced and un-hedged. |
Store corn or beans?
