Projected Returns to Storage

Over the past two years, tight supplies of corn and soybeans created positive returns to crop storage. Despite inverted markets, futures prices typically increased throughout the year. Furthermore, basis levels became extremely favorable in June, July, and August of both years as well.

However, storage does not have positive returns every year. Prices can fall or remain steady while storage costs eat into potential profits. This article examines the current outlook for returns to both off-farm and on-farm storage.  

Off-Farm Storage

For this analysis,...