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Cash - Futures Price Relationships: Guides To Corn Marketing

Author

Listed:
  • Karlson, Nicholas
  • Anderson, Brad
  • Dahl, Reynold P.

Abstract

This study analyzes the role of futures markets in corn marketing decisions. Besides price discovery and price-risk management, hedging in the futures market facilitates a return to corn storage. First, the seasonality in corn marketings and prices is examined. Second, the seasonality of the difference between cash and futures prices, the basis, is analyzed. Understanding the basis is important because it is a useful guide for decisions on corn storage and sale. Finally, several corn marketing strategies are developed and analyzed. Cash corn prices at Clarkfield, Minnesota, and futures prices on the Chicago Board of Trade are used in the analysis.

Suggested Citation

  • Karlson, Nicholas & Anderson, Brad & Dahl, Reynold P., 1993. "Cash - Futures Price Relationships: Guides To Corn Marketing," Staff Papers 14274, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:14274
    DOI: 10.22004/ag.econ.14274
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    File URL: https://ageconsearch.umn.edu/record/14274/files/p93-01.pdf
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    References listed on IDEAS

    as
    1. Houck, James P., 1974. "Minnesota Agricultural Economist No. 561," Minnesota Applied Economist\Minnesota Agricultural Economist 163672, University of Minnesota, Department of Applied Economics.
    2. Stanley C. Stevens, 1991. "Evidence for a weather persistence effect on the corn, wheat, and soybean growing season price dynamics," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 11(1), pages 81-88, February.
    3. Dahl, Reynold P. & Usset, Edward C., 1981. "Minnesota Agricultural Economist No. 631," Minnesota Applied Economist\Minnesota Agricultural Economist 163791, University of Minnesota, Department of Applied Economics.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    Marketing;

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