Predicting the Corn Basis in the Texas Triangle Area
AbstractShifting patterns of corn use as a result of the ethanol boom may be causing basis levels to change across the United States, creating the need for methods to predict basis levels in dynamic conditions. This study develops a new and straightforward economic model of basis forecasting that outperforms the simple three-year average method suggested in much of the literature. We use monthly data of the corn basis in the Texas Triangle Area from February 1997 to July 2008. The results show the new model based on economic fundamentals performs better than basis estimates using a three-year moving average.
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Bibliographic InfoArticle provided by Agricultural Economics Association of Georgia in its journal Journal of Agribusiness.
Volume (Year): 27 (2009)
Issue (Month): ()
basis; corn; grain marketing; Texas Triangle Area; Agribusiness; Marketing;
Other versions of this item:
- Mkrtchyan, Vardan & Welch, J. Mark & Power, Gabriel J., 2009. "Predicting the Corn Basis in the Texas Triangle Area," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46759, Southern Agricultural Economics Association.
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