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southern MN | Grain can keep for 1-2 years, tends to get expensive to keep it that long tho. You have to watch it tho, for mold/ heat/ damp.
Basis is the difference between what Chicago prices it's 'futures' grain prices (which is all on paper, not real grain....) and what people by you who buy grain _actually_ pay for _real_ grain. Typically in high grain producing states the basis is pretty bad - you get a lot less than the quoted Chicago price. It is not a steady number, fluctuating during the seasons.
HTA you price grain today to deliver it at some other period of time. You agree to the Chicago price of the garin, and will determine the basis differencde at some later date. Or, you agree to sell grain on a future date, agreeing to the futures price, but you hope the basis will get better between now & then.
--->Paul | |
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unit price?
