Using Basis, Futures Price, and Futures Price Spread as Barometers for Storage Decisions

Mounir Siaplay, Brian D. Adam, B. Wade Brorsen, Kim B. Anderson

Abstract


The purpose of this paper is to determine the importance of the strength and weakness of basis, futures spread, and futures prices as barometers for producers to use in deciding whether to store or not. Basis is the most important market signal for wheat producers to use when deciding whether to store and hedge or sell their wheat at harvest.


Full Text: PDF DOI: 10.5539/ijef.v4n5p15

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This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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