Grain markets are "like the slow drip of a leaky faucet that no one can fix."

[Bowerpower]

However if you can STORE it... in 60's Dad said the price was $0.60 / bu. NO quota, they stored some for 3 years. In 1967 he hauled wheat for weeks with OPEN QUOTA, not sure of price.
Only a 300 bu truck and shoveling wooden bins, but 4 mile haul, dream of that today.

like
Store and wait, can't fix supply, everyone producing. Im starting to think I need storage for 2 crops minimum.

[MBgrower]

like
Store and wait, can't fix supply, everyone producing. Im starting to think I need storage for 2 crops minimum.

I'm thinking the same, two years of storage likely required.

[errolanderson]

I'm thinking the same, two years of storage likely required.

Or alternatively, sell the cash and replace with paper . . . then you won't need all those grain bins and lowers your risk of storage.

[bucket]

So I sell my lentils at 18 cents...my peas at 6.50 .....my flax at 12.25....my durum at 7.25....

And replace it with what paper?

Storage problem solved and then the trip to the banker or real estate agent..to sign papers?

[fjlip]

Or alternatively, sell the cash and replace with paper . . . then you won't need all those grain bins and lowers your risk of storage.

That is the theory but nobody seems to ever practice on many bushels...in a decreasing price market how will that work? For 2 or 3 years?

[errolanderson]

That is the theory but nobody seems to ever practice on many bushels...in a decreasing price market how will that work? For 2 or 3 years?

How will that work if you have unpriced wheat in your bin?

The decision to store or replace with paper varies between farms and financial health. If you have a lot of bins, solid storage conditions and don't need the cashflow, farm storage is great to wait out depressed markets. But if you need the cash, sell the physical wheat and replace with paper effectively injects cash into your operation.

There is also a protein question here. If you have high protein, you may want to take advantage of these strong premiums and flat-price. But the same can be said for low protein. If the feed market is your only market, replacing with paper may upgrade your quality.

Food-for-thought . . . .

[blackpowder]

Thing is. Paper is cash and it expires. Thats the tricky part.

[MBgrower]

Or alternatively, sell the cash and replace with paper . . . then you won't need all those grain bins and lowers your risk of storage.

cant hedge basis, blending old crop into new crop, etc. using marketing futures, options, fx markets is quite simple, but often not practical. richest farmers I know always have grain in the bin.

[farming101]

richest farmers I know always have grain in the bin.

Always....

[farmaholic]

Always....

Or a stack of deferred grain checks that could choke a T-Rex!