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Actual Cost of Drying Soybeans vs Loss of Yield Potential 09/17/08 8:46:31 AM
Does it pay to wait for your soybeans to get dry to avoid paying drying charges to the elevator? As you can see by the chart below, the yield loss due to harvesting 11% moisture soybeans at $10.50/bushel far exceeds the drying cost of harvesting 16% moisture soybeans. This does not take into consideration any loss due to harvesting high moisture or low moisture soybeans.
For example, If you harvest 16% moisture soybeans it will cost you approx. $.22/bu net in shrink at $10.50/bu soybeans. If you wait to harvest your soybeans after they drop down to 11% moisture you are losing $.27/bushel in potential yield at $10.50/bu soybeans.
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| Soybean cash price = |
$10.50 |
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Percent |
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Soybean |
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Elevator |
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Actual |
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Gain |
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Cost to |
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Moisture |
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Shrinks |
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Shrink |
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for Drying |
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Producer |
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17% |
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9% |
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5.20% |
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3.80% |
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($0.40) |
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Actual Drying Charge per bushel. |
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16% |
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6% |
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3.90% |
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2.10% |
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($0.22) |
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15% |
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4% |
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2.60% |
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1.40% |
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($0.15) |
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14% |
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2% |
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1.30% |
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0.70% |
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($0.07) |
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13% |
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0% |
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0.00% |
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0.00% |
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$0.00 |
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12% |
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0% |
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-1.30% |
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-1.30% |
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($0.14) |
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Cost per Bushel loss (unrealized) |
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11% |
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0% |
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-2.60% |
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-2.60% |
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($0.27) |
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10% |
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0% |
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-3.90% |
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-3.90% |
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($0.41) |
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9% |
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0% |
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-5.20% |
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-5.20% |
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($0.55) |
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8% |
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0% |
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-6.50% |
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-6.50% |
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($0.68) |
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