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 ...

Quick View
  • Enlist Cotton Approved USDA has made its final decision to deregulate Dow AgroScience's Enlist cotton trait, which means...
  • Market Moves Weaning and preconditioning top the list of aggravating and expensive chores for most ranchers. C...
  • Ask The Mechanic Ask the Mechanic answers the question about how VW and German engineering was able to get by with...
  • Senior Partners - 4 Except for family sales, seller financing virtually vanished after the farm crisis of the 1980s w...
  • PNW Ag Hit by Historic Drought In addition to problems with the Northwestern wheat crop, cattle are also being adversely affecte...
  • RFS Deadline Nears With the deadline to file comments on the proposed Renewable Fuel Standard volumes to strike at m...
  • Woodbury: Farm Family Business Agendas don't always lead to immediate decisions, but can still cement your family unity.
  • Multi-Year Losses Spur Concern The recent price rally offered growers a welcome opportunity to price 2014 and 2015 crops, but it...
  • Ask the Vet The vet says my calf had Mannheimia. What is that?
Related News Stories
DTN Closing Grain Comments
DTN's Quick Takes
DTN Midday Livestock Comments
DTN Midday Grain Comments
Gulke: Collapsing Markets
DTN Before The Bell Grain Comments
DTN Early Word Opening Livestock
DTN Early Word Grains
DTN Closing Grain Comments
DTN Midday Livestock Comments