Assuming it's better
- By: "Farm Tender" News
- Farm Tender, DelayPay & Farm Inputs
- Feb 29, 2024
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By Dwain Duxson
Assuming it's better - Respected Grains analyst Andrew Whitelaw (from Episode 3) wrote a good piece yesterday about holding on to Grain post-Harvest. It's our long-held belief that we get higher prices in that period from, say, after Harvest to July. You can read his article here.
One thing that many don't consider is the cost of carry. Andrew has set the price at $4:50 a month, which would be around the mark and which would include interest and perhaps lost opportunity.
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In his article, he has graphed the price from Harvest to July and has included the cost to carry price, and more often than not, the prices post-Harvest each year is lower. It's very interesting.
It's one of those things where we assume it's better when, if we dig deeper, it's actually not. Holding onto Wool could be another one. Can you name another situation in Farming where we assume it's better when it's actually not? Reply to dwaind@farmtender.com.au
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