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EC SoDak | Here is what I have for local, one being an ethanol plant and the other the local coop a mile from the plant. My area is really pushing it would appear to get the grain now, so I’m obliging them at the moment anyways.
I suppose on your end where you have the .20 of cash carry, the biggies are interest/opportunity cost of money, if you’re paying storage fees, and is the grain already hedged and it’s just a basis+March to May or July contract carry. So where it gets a bit messy is let’s say interest/opportunity cost is .03 bu/mo and if you’re paying storage fees (I’m not sure what they are here, but White Shadow I believe said they were .07 bu/mo up there) you’re losing .10 bu/mo, so you’d be paying around .40 bu to gain at least a currently known .20 bu/mo, effectively losing a potential .20 bu. Odds are things will change, ie a bump in price, who knows what basis will do, nationally I think It will average wider, but locally that may be different for you.
Lots of fun… I wish I had a crystal ball that’d tell me the future. Lol
Edited by SoDak Farms 2/17/2024 23:25
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For those Storing & Ignoring or waiting on basis improvement
