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Storage and the carry

When later futures months pay more than nearby ones (a carry), the market pays you to store; compare that with your storage cost.

If March corn futures are higher than December, the market is paying a carry. Add the expected basis change and compare with your cost to store: interest on the money, shrink, drying, aeration and bin space (or commercial storage fees).

If the spread is flat or inverted (nearby higher), the market is asking for grain now.

Each market page shows every contract month and the spreads between them.

Next: Know your break-even

General education about how marketing tools work. Not advice to buy, sell or hedge; talk with your elevator, broker, lender or crop insurance agent about your own situation.