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To: robert b furman who wrote (8979)	1/3/2006 6:39:03 AM
From: Ish	Read Replies (1) of 12411

<<Feed mills provide storage grinding and drying services?>> Feed mills and elevators are different things although an elevator may have a feed mill as part of their service. An elevator will dry and store grains, for a price, until the farmer wants to sell his grain to the elevator. <<Who and where does delivery ever occur at?>> The price is whatever the CBOT price is less the cost to transport it to Chicago. That's not carved in stone but a general rule. Local demand can raise prices, ie. Purina pays 25 cents a bushel more for grains delivered to it's plants than what elevators pay. A farmer at Bath, Illinois might deliver his grain to ADM in Havana, Illinois and that grain might be shipped to China and never see the CBOT. BTW, the CBOT isn't the only place to trade grain. There are several BOTs in the US but the CBOT is the biggest.

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