Grain bids as of October 16, 2017
* Prices may vary between locations because of freight and markets. *
South Division Wheat
| || ||3.42 |
|North Division Corn |
South Division Corn
| ||3.20 |
|CORN-MWAS IN STORE||3.00||-3|
|North Division Milo/bu |
South Division Milo/bu
|North Division Soybeans |
South Division Soybeans
| || |
|NuSun Sunflowers||no bid|
Basics to maximizing profits for on-the-farm stored grain:
Being long means you are the owner.
Being short means you are the seller .
Basis- the difference between the cash bid and the referenced futures price.
Example CME March corn futures 3.70 cash grain bid 3.30 basis is -40CH
Spreads -the difference in prices between futures reference months. A carry market is when the deferred futures price is higher than the nearby futures price.
Example CME July corn futures 3.85 March corn futures 3.70 that is a 15 cent carry.
An inverted market is when the deferred futures price is lower than the nearly
Example CME July corn 3.70 march corn futures 3.85 that is a 15 cent Inverse.
Hedging- selling futures to lock in profits. Once futures are sold we watch the basis and the carries.
Minimum price contracts.
Options- A call option gives the owner the right but not the obligation to be long futures at the options strike price. Use a call when cash has been sold.
A put option gives the owner the right but not the obligation to be short futures at the options strike price. Use a put to set a floor cash has not been sold.
NBE HTA or Futures First all the same contract . You let NCCA sell futures for you and the basis is not determined . Final cash price not determined . Service fee of 5 cents for corn 8 for soybeans .
Basis contract- basis is determined but futures are not set . Final cash price not determined. No service fee