Published online by Cambridge University Press: 10 May 2017
This study develops a simple model to forecast the basis for corn in a specific region. Improved forecasts can improve hedging decisions. Basis behavior, however, depends on explanatory variables that are themselves difficult to forecast with precision. This limits the usefulness of the basis model, but it does offer some benefit over naive forecasts.
This article is based on Taylor's M.S. thesis. We gratefully acknowledge the suggestions of K. L. Robinson, D. G. Sisler, and L. W. Tauer.