taking delivery, how to calculate the costs

Discussion in 'Commodity Futures' started by traderbro, Feb 20, 2014.

  1. traderbro

    traderbro

    how does one calculate the costs associated with taking delivery, transporting, paying taxes, insurance and tariffs on commodities. Is there some industry standard software the commodity desks are using? Its a total mess working it all out, any help is appreciated.
     
  2. jeb9999

    jeb9999

    If you are in the business of dealing in physical commodities you already know all the costs involved and have no need to calculate anything.

    If you are not in the business of dealing in physical commodities you will be paying much higher costs than those already in the business. You also have a reasonable probability of making a major mistake in the handling/storage/transportation of physical commodities.