Post-Harvest Grain Storing and Hedging with Efficient Futures
This study simulates whether Kansas wheat, soybean, corn, and milo producers could have profitably used deferred futures plus historical basis cash price expectations for post-harvest unhedged and hedged grain storage decisions from 1985-97. The signaled storage decision is compared to a representat...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
1999-12-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30800 |
| _version_ | 1818294097835720704 |
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| author | Terry L. Kastens Kevin C. Dhuyvetter |
| author_facet | Terry L. Kastens Kevin C. Dhuyvetter |
| author_sort | Terry L. Kastens |
| collection | DOAJ |
| description | This study simulates whether Kansas wheat, soybean, corn, and milo producers could have profitably used deferred futures plus historical basis cash price expectations for post-harvest unhedged and hedged grain storage decisions from 1985-97. The signaled storage decision is compared to a representative Kansas producer whose crop sales mimic average Kansas marketings each year. Using 23 grain price locations, the simulations resulted in an 11 cents per bushel annual increase in grain storage profits for wheat, 27 cents for soybeans, -17 cents for corn, and -20 cents for milo; however, storage profit differences varied substantially across locations. Hedging tended to decrease risk, but not impact profitability. |
| first_indexed | 2024-12-13T03:26:20Z |
| format | Article |
| id | doaj.art-69f450e1ff1f4ea1b40b3500f5d8ad0c |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-13T03:26:20Z |
| publishDate | 1999-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-69f450e1ff1f4ea1b40b3500f5d8ad0c2022-12-22T00:01:16ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851999-12-0124248250510.22004/ag.econ.3080030800Post-Harvest Grain Storing and Hedging with Efficient FuturesTerry L. KastensKevin C. DhuyvetterThis study simulates whether Kansas wheat, soybean, corn, and milo producers could have profitably used deferred futures plus historical basis cash price expectations for post-harvest unhedged and hedged grain storage decisions from 1985-97. The signaled storage decision is compared to a representative Kansas producer whose crop sales mimic average Kansas marketings each year. Using 23 grain price locations, the simulations resulted in an 11 cents per bushel annual increase in grain storage profits for wheat, 27 cents for soybeans, -17 cents for corn, and -20 cents for milo; however, storage profit differences varied substantially across locations. Hedging tended to decrease risk, but not impact profitability.https://ageconsearch.umn.edu/record/30800futureshedgingmarket efficiencystorage |
| spellingShingle | Terry L. Kastens Kevin C. Dhuyvetter Post-Harvest Grain Storing and Hedging with Efficient Futures Journal of Agricultural and Resource Economics futures hedging market efficiency storage |
| title | Post-Harvest Grain Storing and Hedging with Efficient Futures |
| title_full | Post-Harvest Grain Storing and Hedging with Efficient Futures |
| title_fullStr | Post-Harvest Grain Storing and Hedging with Efficient Futures |
| title_full_unstemmed | Post-Harvest Grain Storing and Hedging with Efficient Futures |
| title_short | Post-Harvest Grain Storing and Hedging with Efficient Futures |
| title_sort | post harvest grain storing and hedging with efficient futures |
| topic | futures hedging market efficiency storage |
| url | https://ageconsearch.umn.edu/record/30800 |
| work_keys_str_mv | AT terrylkastens postharvestgrainstoringandhedgingwithefficientfutures AT kevincdhuyvetter postharvestgrainstoringandhedgingwithefficientfutures |