Predicting the Corn Basis in the Texas Triangle Area
AbstractThis 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 and the graphs indicate that the new model based on economic fundamentals performs better than basis estimates using a three-year moving average.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46759.
Date of creation: 15 Jan 2009
Date of revision:
Hedging; basis; corn; Agribusiness; Agricultural Finance; Financial Economics; Marketing; Risk and Uncertainty;
Other versions of this item:
- Welch, J. Mark & Mkrtchyan, Vardan & Power, Gabriel J., 2009. "Predicting the Corn Basis in the Texas Triangle Area," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 27.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tomek, William G. & Peterson, Hikaru Hanawa, 2000.
"Risk Management in Agricultural Markets: A Survey,"
121140, Cornell University, Department of Applied Economics and Management.
- Tomek, William G. & Peterson, Hikaru Hanawa, 2000. "Risk Management In Agricultural Markets: A Survey," 2000 Producer marketing and Risk Management Conference, January 13-14, Orlando, FL 19580, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Taylor, Mykel R. & Dhuyvetter, Kevin C. & Kastens, Terry L., 2006. "Forecasting Crop Basis Using Historical Averages Supplemented with Current Market Information," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
- Hayenga, Marvin L. & Jiang, Bingrong, 1997. "Corn and Soybean Basis Behavior and Forecasting: Fundamental and Alternative Approaches," Staff General Research Papers 10400, Iowa State University, Department of Economics.
- Outlaw, Joe L. & Anderson, David P. & Klose, Steven L. & Richardson, James W. & Herbst, Brian K. & Waller, Mark L. & Raulston, J. Marc & Sneary, Shannon L. & Gill, Robert Chope, II, 2003. "An Economic Examination of Potential Ethanol Production in Texas," Working Papers 42707, Texas A&M University, Agricultural and Food Policy Center.
- Seamon, V. Frederick & Kahl, Kandice H. & Curtis, Charles E., Jr., 1997. "A Regional Comparison Of U.S. Cotton Basis Patterns," Working Papers 18806, Clemson University, Department of Agricultural and Applied Economics.
- Parcell, Joseph L. & Schroeder, Ted C. & Dhuyvetter, Kevin C., 2000. "Factors Affecting Live Cattle Basis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(03), December.
- Sanders, Dwight R. & Manfredo, Mark R., 2006. "Forecasting Basis Levels in the Soybean Complex: A Comparison of Time Series Methods," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(03), December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.