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The physical cost of carry is two parameters and the unit of measure and value of the contractCost of Carry panel displays the costs related to holding grain from one month to another. You can add the Cost of Carry matrix to your workspace by clicking on More in the main toolbar and then selecting Cost of Carry under the Calcs section.

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The calculation for cost of carry can be found below:

(Current Futures Price * (Days/365) * IR%)  +  ((Days/365) * 12 * Monthy Storage * 100)

Market Carry is the difference between the nearer term futures contract and the farther term futures contract (ZCU22 - ZCZ22).

% of Full Carry is the percentage of the costs of carry that the market carry covers (Market Carry/Cost of Carry)

By default, the panel is set to use Corn as the commodity. You can change the underlying commodity contract by clicking on the dropdown menu in the upper right corner. Commodities covered in the Cost of Carry include corn, soybeans, wheat (CBOT), spring wheat (MGEX), hard red wheat (KCBT), canola (ICE/CA), barley and oats (CBOT).

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The cost of carry primarily uses the cost of storage and the prevailing interest rate. You can update either of these variables by clicking on the configure calculation button and updating the inputs.

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Below is an example of the cost of carry calculation:


1.)  The first parameter is storage cost and should be user editable. The storage cost parameter should be in terms of $ per unit/day, unit being the units that the commodity trades in. For example, corn trades in bushels. The storage cost per bushel is something like $.0025 (i.e. 1/4 cent) per bushel per day. So the storage cost for corn, from September to December, is $.0025 x 3 months x 30 days/month = 22.5 cents (leave it in cents for grains, not dollars. i.e. not .225)

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