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central illinois | Those in charge of the grain handling industry in the gulf are doing exactly what the economics tell them to do, hold on to high damage corn to blend off with new crop. They can pay barge demurage and store corn on barges for about 5 cents per bu. per month plus interest cost. They have bought high damage corn at much larger discounts than that, so they pay barge demurage in order to temporally store corn. The barge lines do not like to have their equipment tied up too long, but as long a fewer empty barges headed back north raises barge freight rates for the rest of their fleet, they don't scream too loudly. | |
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Whats going on with spread between Dec '10 and July '11 ?
