An Analysis of Anticipatory Short Hedging Using Predicted Harvest Basis

@inproceedings{Kenyon2002AnAO,
  title={An Analysis of Anticipatory Short Hedging Using Predicted Harvest Basis},
  author={David E. Kenyon and Steven E. Kingsley},
  year={2002}
}
  • David E. Kenyon, Steven E. Kingsley
  • Published 2002
The use of the futures market as an aid in The producer's net price ($1.20) is the harvest cash marketing farm commodities has been gaining in price ($1.15) plus the gain or loss on the futures popularity among producers. Current hedging contract(s) ($.05). Equivalently, net price is the short practices are largely based on average basis or basis futures price ($1.25) plus the harvest basis ($-.05). movement over some historical time period. The Producers can use the latter relationship to lock… CONTINUE READING