Grain bids as of July 20, 2018

* Prices may vary between locations because of freight and markets. *

GRAIN

CASH

CHG

NC

CHG

OUT PRICE

North Division Wheat
South Division Wheat
4.68
4.68
+12
+12




4.98
4.98
North Division Corn
South Division Corn
3.25
3.25
+4
+4
3.24
3.24
+4
+4
3.55
3.55
CORN-MWAS IN STORE 3.40 +4 3.39
+4
North Division Milo/bu
South Division Milo/bu
2.80
2.80
+4
+4



OATS no bid



North Division Soybeans
South Division Soybeans
7.95
7.95
+4
+4
7.75
7.75
+4
+4

NuSun Sunflowers no bid



Basics to maximizing profits for on-the-farm stored grain:

Being long means you are the owner.

Being short means you are the seller .

Basis- the difference between the cash bid and the referenced futures price.

Example CME March corn futures 3.70 cash grain bid 3.30 basis is -40CH

Spreads -the difference in prices between futures reference months. A carry market is when the deferred futures price is higher than the nearby futures price.

Example CME July corn futures 3.85 March corn futures 3.70 that is a 15 cent carry.

An inverted market is when the deferred futures price is lower than the nearly

futures.

Example CME July corn 3.70 march corn futures 3.85 that is a 15 cent Inverse.

Hedging- selling futures to lock in profits. Once futures are sold we watch the basis and the carries.

Minimum price contracts.

Options- A call option gives the owner the right but not the obligation to be long futures at the options strike price. Use a call when cash has been sold.

A put option gives the owner the right but not the obligation to be short futures at the options strike price. Use a put to set a floor cash has not been sold.

NBE HTA or Futures First all the same contract . You let NCCA sell futures for you and the basis is not determined . Final cash price not determined . Service fee of 5 cents for corn 8 for soybeans .

Basis contract- basis is determined but futures are not set . Final cash price not determined. No service fee

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