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.



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