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| The thing is, even if basis stays the same, there is enough carry in the market to pay most people enough to store. The most important thing to remember is the fact you are not storing to capture futures price improvement! It does you no good to store wheat unhedged if your goal is to capture carry and/or basis improvement, which should be the only two reasons you ever store grain anyway. Storing wheat at harvest is a no-brainer for those that have the capability. I don't have a lot of faith in wheat basis improving into the end of the year, at least on ordinary pro wheat, so if you do have it stored and basis improves even 5 or 10 cents, I would probably start to lock some of that in. | |
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Wheat basis
