Source summary
What this article covered
Understanding Moisture Levels
Grain moisture significantly impacts pricing, with corn typically priced at 15% moisture and soybeans at 13%. Deliveries above these levels incur discounts, while lower moisture can lead to lost revenue without compensation.
Delivery Costs Matter
The distance to buyers and wait times during unloading can greatly affect net returns. Producers should analyze both factors together to determine the most cost-effective delivery option.
Storage Considerations
While on-farm storage offers flexibility, it can also introduce additional costs such as drying and quality deterioration. Producers must weigh these costs against potential price benefits from delayed delivery.
Market Dynamics
The article highlights the importance of looking beyond posted prices to consider all associated costs and market conditions when making grain delivery decisions.
Key takeaways
5 things worth knowing
- 01
Grain moisture levels can lead to significant price discounts.
- 02
Delivery distance and wait times affect overall delivery costs.
- 03
Producers should evaluate total delivery time and costs together.
- 04
Storage options may provide flexibility but come with additional costs.
- 05
Market conditions can shift, making timing critical for delivery decisions.
Source figures at a glance
At a glance
What the article covered, in 4 signals
Grain
Moisture Discounts
Corn moisture levels
Higher moisture leads to price reductions.
Costs
Delivery Expenses
Distance and wait times
Longer distances increase delivery costs.
Storage
Market Timing
Storage options
Storage can provide flexibility but incurs costs.
Profitability
Net Returns
Evaluating delivery decisions
Consider total costs beyond posted prices.
Questions & answers
Quick answers
How does grain moisture affect pricing?
Grain delivered above standard moisture levels incurs discounts, reducing the effective price.
What should I consider when choosing a grain buyer?
Evaluate delivery distance, wait times, and total costs to determine the best buyer.
Are there benefits to storing grain before selling?
Storage can provide flexibility but may also incur additional costs.
How do delivery costs impact my profits?
Higher delivery costs can significantly reduce net returns, so consider all factors.