how much is the storage cost for different grains?

Discussion in 'Ag Futures' started by cwl18, Oct 17, 2010.

  1. cwl18

    cwl18

    i like to find out the carry cost for different grain markets. One thing i can't get up to date information on is the the storage cost.

    i know the formula is:

    (interest rate/12 * price per bushel + storage/insurance per bushel) * number of months between spread.

    i try and ring my broker up and find out the strong/insurance cost and the rates seems to be quite different then i read from the ET threads.

    is there a place i can get up to date rates on storage, better still the carry cost for various grain?

    thanks for the help

    clayton
     
  2. local

    local

    Look under contract specifications listed by the exchange. Some exchanges will calculate and list carrying charges for you. In your calculation, should be no. of days between first delivery days, not no. of months.

    Regards, local
     
  3. cwl18

    cwl18

    thanks very much local.

    i indeed found the rates in the CME futures contracts specs pages, or

    http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/variable-storage-rate.html

    where i got the value of 0.00365/bu/day in the calculator for wheats

    however, i cant see the storage rates for other grains, any help for that?


    also, i like to backtest the grain and need to find out the historical rates for storage rates / carry charge for the last few years, is there a place i can find out??
     
  4. The "tricky" thing about carrying charges is that they can vary from participant to particpant. It's not a single, fixed, "number" for everyone. :eek:
     
  5. cwl18

    cwl18

    you are right nazzdack, you need to be aware of the different rates for different participants, but you still need a number to plug into the formula.

    i kinda dig in a bit further and found the numbers i need from the CBOT rulebook, under the premium charges.


    so for historical storage rates, should i assume roughly the same? or there is a place to log down all the historical storage rates for various contract?
     
  6. You may derive some "value" from focusing on the percentage of full, theoretical, carrying charge with respect to what's reflected in the market. :cool:
     
  7. mcheema

    mcheema

    Rather than start a new thread. It seems a source of historical carrying charges/storage charges hasn't been mentioned.

    Does one exist either for free or behind a pay-wall?