Posted by: cffm | May 1, 2013

Commodity Challenge Tuesday Tip: Cash Transactions

A cash transaction is simply a cash sale of grain you own which is taken out of storage.

For example: If you take today’s spot price for soybeans and you’re selling them for ten dollars a bushel and you’ve got 10,000 bushels of soybeans. You are going to price and deliver that to your local elevator and that elevator is going to write you a check for $100,000.

$10/bushel * 10,000 bushels = $100,000

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