Futures Cost of Carry

[Spcboe]

Hi, all. Learning spread trading on futures here. Can someone direct me to a website that provides info. for current carry charges or at least storage and insurance costs. I thank you in advance.

 

[drewfus31]

There are a few factors involved in The Carry. Interest rates being one of them. A quick'n'dirty method would be to figure on about 3 to 3.5 cents per bushel per month to store grain. This cost is approximate and can differ due largely to interest rates. (including opportunity cost of capital, interest on an operating loan for a farm, etc)

There is no "carry" in the meats, as you have to feed them daily regardless.


Hope that helps!

drewfus

 

[dcarrigan]

There are a few factors involved in The Carry. Interest rates being one of them. A quick'n'dirty method would be to figure on about 3 to 3.5 cents per bushel per month to store grain. This cost is approximate and can differ due largely to interest rates. (including opportunity cost of capital, interest on an operating loan for a farm, etc)

There is no "carry" in the meats, as you have to feed them daily regardless.


Hope that helps!

drewfus

lol

 

[jhaughey]

http://www.scarrtrading.com

very useful, and cheap end of day service aimed at spread traders. It's sort of like a DIY Moore research site, they have a carry calculator in there somewhere, though you'll have to get up to speed on things like current insurance and warehousing rates etc;