Carry & Storage
Whether waiting pays, netting what the board pays against what the local market pays and what holding the grain costs.
Holding corn on farm to Sep 2027 nets $0.41 a bushel after storage. On the 998k bu of old crop still unpriced across 31 clients that is $409,166.
Storage cost
3.0¢
Per bushel per month, on farm. Shrink, aeration, interest, and quality risk.
Best holding period
9 months
To Sep 2027, netting $0.41/bu.
Old crop still held
998k bu
31 clients with unpriced corn in the bin.
What the answer is worth
$409.2K
Gained across the book by holding to the best period.
What waiting nets, by holding period
The arithmetic
| Hold until | Months | Carry the board pays | Basis gain expected | Storage cost | Net | Verdict |
|---|---|---|---|---|---|---|
| Mar 2027 from Dec 2026 | 3 | +$0.18 | +$0.17 | -$0.09 | +$0.26 | Waiting pays |
| May 2027 from Dec 2026 | 5 | +$0.25 | +$0.21 | -$0.15 | +$0.31 | Waiting pays |
| Jul 2027 from Dec 2026 | 7 | +$0.36 | +$0.25 | -$0.21 | +$0.40 | Waiting pays |
| Sep 2027 from Dec 2026 | 9 | +$0.40 | +$0.28 | -$0.27 | +$0.41 | Waiting pays |
On-farm storage is charged at 3.0 cents a bushel a month and commercial at 7.0. On-farm is cheaper and it is not free: the bushels still shrink, still need aeration, still carry interest on money not yet collected, and still carry the risk of a quality discount at delivery.
TODO: interest is the largest and most variable part of that figure and is currently baked in rather than following an actual rate. At a 7.5% operating note on $4.40 corn, interest alone is close to three cents a month. Basis gains are the expected seasonal recovery, not a forecast, and a year that does not behave seasonally will not deliver them.