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Cost of Forward Contracting Hard Red Winter Wheat

Published online by Cambridge University Press:  28 April 2015

John P. Townsend  and
B. Wade Brorsen
John P. Townsend
Affiliation:
Panhandle State University
B. Wade Brorsen
Affiliation:
Oklahoma State University
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Abstract

Two methods were used to estimate the cost of forward contracting hard red winter wheat. One hundred days before delivery, the estimated cost of forward contracting ranged from six cents/bu. to eight cents/bu. Thus, further evidence is provided that the cost of forward contracting grain is not zero.

Keywords

Forward contractingnonparametric regressionwheat
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 32 , Issue 1 , April 2000 , pp. 89 - 94
Copyright
Copyright © Southern Agricultural Economics Association 2000

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