Structural change in forward contracting costs for Kansas wheat

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dc.contributor.author Taylor, Mykel R.
dc.contributor.author Tonsor, Glynn T.
dc.contributor.author Dhuyvetter, Kevin
dc.date.accessioned 2015-03-18T20:49:38Z
dc.date.available 2015-03-18T20:49:38Z
dc.date.issued 2015-03-18
dc.identifier.uri http://hdl.handle.net/2097/18883
dc.description.abstract Farmers use forward contracts to eliminate adverse price and basis movements prior to harvest. Since late 2007, the local basis for Kansas wheat has changed dramatically relative to historic levels, causing greater risk exposure for elevators o ffering forward contracts. The result has been an increase in the cost of forward contracting paid by farmers from $0.086 per bushel to $0.327 per bushel. The factors driving this increase in costs are basis volatility, wheat futures harvest price, the information available in the market as harvest approaches, and realized returns to the elevator from forward contracting in previous years. en_US
dc.language.iso en_US en_US
dc.relation.uri http://www.waeaonline.org/UserFiles/file/JAREAug20145Taylorpp217-229.pdf en_US
dc.subject Basis en_US
dc.subject Convergence en_US
dc.subject Forward contract en_US
dc.subject Kansas wheat en_US
dc.subject Risk en_US
dc.subject Volatility en_US
dc.title Structural change in forward contracting costs for Kansas wheat en_US
dc.type Article (author version) en_US
dc.date.published 2014 en_US
dc.citation.epage 229 en_US
dc.citation.issue 2 en_US
dc.citation.jtitle Journal of Agricultural and Resource Economics en_US
dc.citation.spage 217 en_US
dc.citation.volume 39 en_US
dc.contributor.authoreid mtaylor en_US
dc.contributor.authoreid gtonsor en_US


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