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Using Basis and Futures Prices as a Barometer in Deciding Whether to Store Grain or Not

Author

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  • Siaplay, Mounir
  • Anderson, Kim B.
  • Brorsen, B. Wade

Abstract

The purpose of this paper is to determine the importance of the strength and weakness of basis and futures prices as barometers for producers to use in deciding whether to store or not. Basis is the single most important market signal for wheat producers to use when deciding whether to store or sell their wheat at harvest. While some models indicated low futures prices were a signal to store, results were fragile and inconsistent.

Suggested Citation

  • Siaplay, Mounir & Anderson, Kim B. & Brorsen, B. Wade, 2007. "Using Basis and Futures Prices as a Barometer in Deciding Whether to Store Grain or Not," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37575, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:nccsci:37575
    DOI: 10.22004/ag.econ.37575
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    References listed on IDEAS

    as
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