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May 13, 2019

Grain Storage Rate Changes

By Kyle Leary - Grain Marketer

As we continue to work through this tight margin environment, capitalizing on all your assets and opportunities is going to be very important.  One of these opportunities this year and going forward is going to be storage. 

Starting this fall the CME has changed the storage rates for the delivery system from .05 per month to .08 per month.  This will allow for carries in the market to become much larger, increase the return on HEDGED stored grain.  This will change our targets for rolling Hedge to Arrive contracts.

A good target for Dec/Jul in the past was to roll at .30, moving forward it will be more like .44.  Below is a table that shows the current carries and the new carries that will take effect November 19th for beans and December 19th for corn. 

Grain 5 14 19 Graphs






Please contact your grain marketer if you have more questions on maximizing the return of your on-farm storage.

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