Q:

What are some cash grain bids locations?

A:

Quick Answer

Cash grain bid locations include elevators and cooperatives throughout the grain-producing regions of the United States, including North Dakota, Kansas, Montana and South Dakota. Agricultural websites offer searches that return a list of bid locations nearest a given ZIP code. Mobile applications are also available to provide bid locations.

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Full Answer

As part of the state grain reports it produces to track grain sales prices across the country, the U.S. Department of Agriculture lists bid locations as well as closing bids at elevators and some terminal sites. These reports also include the volume and type of commodity under bid, such as soybeans, corn or wheat.

Location is an element of determining the basis for grain or the difference between its price on the futures market and the local cash selling price. A local cooperative or elevator whose cash grain bid price is higher than that offered by its competitors encourages delivery from local grain producers. Buyers are willing to offer higher prices when local supply is limited or demand is high, creating a strong or narrow basis. Producers can use basis in time of high supply and low demand to determine whether an immediate sale is more profitable that the cost of storing grain in hopes of earning a higher sales price in the future.

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