date:Jul 30, 2014
of storage to determine the returns to storage. The cost of storage incudes interest on the value of the stored crop and he magnitude of out-of-pocket costs to store the crop.
Those costs will likely be higher for off-farm storage than for on-farm storage since overhead costs of existing on-farm facilities would not be an out-of-pocket cost. Spot and forward bids in the cash market reflect current futures prices, the spot basis, the magnitude of the carry in the futures market, and the basis fo