MARKETS NEWS
Dust Off the Storage Hedge
Katie Micik DTN Markets Editor
Thu Oct 3, 2013 12:44 PM CDT

OMAHA (DTN) -- This year's bumper corn crop will fill many storage bins that spent the last year gathering dust. But farmers shouldn't put their corn in the bin and forget about it, DTN Senior Analyst Darin Newsom said.

"Farmers should use the carry in futures markets to hedge their grain while they wait for basis to appreciate," he said. A classic storage hedge can help farmers get a better price than they would get by simply storing grain and selling it later because farmers can capture the carry.

Carry is the price difference between futures contracts when the deferred ...

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