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 Jul 2027 nets $0.17 a bushel after storage. On the 998k bu of old crop still unpriced across 31 clients that is $169,654.
Storage cost
3.0¢
Per bushel per month, on farm. Shrink, aeration, interest, and quality risk.
Best holding period
10 months
To Jul 2027, netting $0.17/bu.
Old crop still held
998k bu
31 clients with unpriced corn in the bin.
What the answer is worth
$169.7K
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 |
|---|---|---|---|---|---|---|
| Dec 2026 from Sep 2026 | 3 | +$0.17 | -$0.21 | -$0.09 | -$0.13 | Waiting costs |
| Mar 2027 from Sep 2026 | 6 | +$0.29 | -$0.05 | -$0.18 | +$0.06 | Waiting pays |
| May 2027 from Sep 2026 | 8 | +$0.40 | +$0.00 | -$0.24 | +$0.16 | Waiting pays |
| Jul 2027 from Sep 2026 | 10 | +$0.44 | +$0.03 | -$0.30 | +$0.17 | 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.