Comment Text:
Wow, 3 years to review what is appropriate for corn and soybean storage rates, what craziness is this when world news travels in seconds! Weather, politics and other issues affect our markets so quickly versus the past. We need to have a mechanism that can adjust storage rates to market conditions. The wheat VSR seems to work but maybe changes to often. I believe an annual review may be more appropriate.
Please ask the CME to review this and consider an annual time period to determine storage charges. Using 80% of full carry to increase $.05 per month and 50% of full carry to decrease seems appropriate. December/March corn and Nov/Jan beans would probably be the logical basing periods.
Before retirement I managed a country grain elevator for over 40 years and one of the bigger issues always was making my lender understand my hedge program. Convergence is a big piece of this issue. Proper storage would make convergence happen.
Since retirement, I have become more involved in my family farming operation. Better convergence would help our crop insurance work much better as our crop insurance benefits are based on futures prices.
Thanks for your consideration of my comments.
