Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-27T19:24:48.598Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Barkley, Andrew P. and Schroeder, Ted C.. “Forward Contracts and Risk Mitigation in Fed Cattle Markets.” Selected paper, American Agricultural Economics Association annual meetings, Manhattan, KS, August 1991.Google Scholar
Brorsen, B.Wade, J. Coombs, and Anderson, K.. “The Cost of Forward Contracting Wheat.” Agribusiness 11(July/August 1995):349–354.3.0.CO;2-2>CrossRefGoogle Scholar
Brorsen, B. Wade, and Kim Anderson. “What Do Extension Marketing Economists Teach?” un-pub. manuscript, Dep. Agr. Econ., Okla. State Univ., 1997.Google Scholar
Davidson, R., and MacKinnon, J. G.. Estimation and Inference in Econometrics. New York: Oxford University Press, 1993.Google Scholar
Dejong, D.N.Nankerris, J. C., Savin, N. E., and Whiteman, C. H.. “Integration versus Trend Station-arity in Time Series.” Econometrica 60(March 1992):423–434.CrossRefGoogle Scholar
Elam, Emmett and Woodworth, John. “Forward Selling Soybeans with Cash Forward Contracts, Futures Contracts, and Options.” Arkansas Business and Economic Review 22(Summer 1989):10–20.Google Scholar
Hardie, W.Applied Nonparametric Regression. Econometric Society Monograph No. 19. New York: Cambridge University Press, 1990.CrossRefGoogle Scholar
Harris, H.M. and Miller, S. E.. “An Analysis of Cash Contracting Corn and Soybeans in South Carolina.” National Conference on Grain Marketing Patterns. Southern Cooperative Series Bulletin No. 307, March 1981, pp. 290–300.Google Scholar
Lence, Sergio H. “Relaxing the Assumptions of Minimum-Variance Hedging.” Journal of Agricultural and Resource Economics 21 (July 1996):39–55.Google Scholar
Pindyck, R.S. and Rubinfeld, D. L.. Econometric Models and Economic Forecasts. 3rd ed. New York: McGraw-Hill, 1991.Google Scholar
White, Kenneth J.SHAZAM User's Reference Manual Version 7.0. Vancouver: McGraw-Hill, 1993.Google Scholar
Williams, J. “Futures Markets: A Consequence of Risk Aversion or Transaction Costs?” Journal of Political Economy 95(October 1987):1000-23.CrossRefGoogle Scholar