Futures Cost of Carry

This is a discussion on Futures Cost of Carry within the Spreads Trading forums, part of the Styles & Strategies category; Hi, all. Learning spread trading on futures here. Can someone direct me to a website that provides info. for current ...

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Join Date: Jun 2005
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Futures Cost of Carry

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.
Spcboe is offline   Reply With Quote
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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
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Originally Posted by 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
lol
dcarrigan is offline   Reply With Quote
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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;
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