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The seller holds on to the grain until a later date to take advantage of a market rally.



Ÿ         Allows the seller to take advantage of grain price improvement



Ÿ         Seller’s grain quality may deteriorate while in storage.

Ÿ         Seller may have storage costs while waiting for a rally in the grain market

Ÿ         If the market declines, the seller is at financial risk.

Ÿ         Money will be tied up in storing the grain and therefore, unavailable to be used for paying off debt or earning interest.

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