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A Note on the Factors Affecting Corn Basis Relationships

Published online by Cambridge University Press:  08 February 2017

Gopal Naik  and
Raymond M. Leuthold
Gopal Naik
Affiliation:
Indian Institute of Management, Ahmedabad, India
Raymond M. Leuthold
Affiliation:
Department of Agricultural Economics, University of Illinois at Urbana-Champaign
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Abstract

Empirical tests were made of components of the corn basis in the U.S. utilizing a general theory of intertemporal price relationships for storable commodities. These tests showed that the basis consists of a risk premium, a speculative component, and a maturity basis apart from other factors such as storage costs for storable commodities. The results provide insights into factors affecting basis patterns for corn.

Keywords

corn basisrisk premiumspeculative componentstorable commodities
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 23 , Issue 1 , July 1991 , pp. 147 - 153
Copyright
Copyright © Southern Agricultural Economics Association 1991

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