November 20, 2020

Role of Basis when making Corn and Soybean Storage Decisions

by Nathanael Thompson and James Mintert

Purdue ag economists Nathan Thompson and James Mintert will help you better understand the basics of two common storage strategies, unpriced storage and storage hedging. You’ll learn how storage hedging provides an opportunity to capture the seasonal increase in basis that occurs during the storage season without speculating on corn or soybean futures prices. The details regarding how to implement, as well as calculate the returns to storage, for each strategy are discussed.

TEAM LINKS:

James Mintert

Nathanael Thompson

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