I can put corn into a warehouse and store it… why is it consider a non-storable commodity? i dont know how to distinguish them.
whole corn perishes. anything perishable is non-storable. its really a judgment call but i’m assuming that most food products would be considered non-storable relative to hydrocarbons.
matt is right
For what it’s worth… In CFAI Book #5 Page 173 it says the following: “Corn is produced at one time of the year, but consumed throughout the year. In order to be consumed when it is not being produced, corn must be stored.”
Then what are those big silos for? You know, like the one Danny Glover’s character died in in the movie “Witness”? It was storing corn.
I think they are saying “stored indefinitely”. Yes, you can store corn, but it will rot given enough time.
don’t they dry out the corn to store it? i’m thinking they aren’t storing corn with water in it, it’ll rot very fast, i woud think. anyway, i think the readings are inconsistent on corn storage… but i’m pretty sure the key small CFAI reading says that storage is drawn down to harvest, then prices go down as there’s tons of corn again.
Damn, I was going to watch Witness tonight to relax. Any other movies you people want to ruin for me?