Earlier this marketing year we discussed the concept of “carry.”
To review that information, visit 'Carry' is important consideration in grain marketing.
Remember, carry is one clear signal from the market telling us what to do. This signal is not foolproof, but it does indicate current market sentiments and suggests appropriate marketing strategies.
Think about it a minute. There are only three things we can do at harvest with any grain not yet committed; 1) sell off the combine, 2) put in storage un-priced, and 3) price for future delivery and put in storage.
To me, bins have two distinct purposes.
The first is bins allow us to speed up harvest. We do not have to run to the elevator and wait in line to unload. The second purpose is actual storage after harvest. When we talk about carry we are referring to longer-term storage.
Continue reading at Marketing report.