NEWS
Cost of Carry Calculation
Wed Feb 19, 2014 02:57 PM CST

Full commercial carry is the total cost of storage and interest to hold grain in commercial storage. For the corn and soybean table, DTN uses a daily storage rate of 0.00165 cents per bushel (roughly 5 cents per month) and an annual interest rate of 3.1% (this provided by one of the largest commercial grain hedging firms in the industry).

The percent of commercial carry (% FCC) divides last daily price in futures spreads by full commercial carry. The higher the percent of full commercial carry a spread reflects, the more bearish the market's view of supply and demand. Conversely, ...

Quick View
Related News Stories
DTN's Grain Quick Takes
DTN Daily Feedstuffs Comments
DTN Plains & Prairies Opening Comments
DTN Daily Basis Comments
USDA: 108,000 MT Sorghum Sold
DTN Plains, Prairies Closing Comments
DTN Daily Feedstuffs Comments
Kub's Den
DTN Plains & Prairies Opening Comments
DTN Plains, Prairies Closing Comments