Premium
The cost of forward contracting wheat
Author(s) -
Brorsen B. Wade,
Coombs John,
Anderson Kim
Publication year - 1995
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199507/08)11:4<349::aid-agr2720110406>3.0.co;2-2
Subject(s) - futures contract , forward contract , economics , forward market , futures market , forward rate , convenience yield , spot contract , forward price , agricultural economics , financial economics , econometrics , monetary economics , interest rate
Gulf wheat forward basis bids increase as harvest approaches. Forward contract prices four months before harvest average $0.4/bu. less than prices at harvest. Prices received by directly hedging in the futures market are estimated to be higher than prices received through forward contracts. © 1995 John Wiley & Sons, Inc.