Posts

Showing posts with the label big crop

Store Corn for Higher Prices Later

The price of corn isn’t great if you are a farmer trying to sell it at a profit. However, the good news may be that prices later in this year and next are likely to get better.

Storing the 2014 Corn Crop

URBANA, IL. – The majority of annually produced crops such as corn obviously have to be stored. According to a University of Illinois agricultural economist, for corn producers, the question at harvest time will be who will store the portion of the crop which has not yet been sold.



“The portion of the crop that has not been sold can be sold at harvest for someone else to store, or the producer can store the crop on the farm or in commercial facilities,” said Darrel Good. “For the portion of the crop stored by the producer, the second question is whether the stored crop should be priced for later delivery or held unpriced. That decision is influenced by the magnitude of the carry in the corn market, the cost of storage, and expectations about the change in corn prices after harvest.”

Good explained that for corn that is stored and priced for later delivery, the price for later delivery needs to