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A Note on the Factors Affecting Corn Basis Relationships

  • Gopal Naik (a1) and Raymond M. Leuthold (a2)

Abstract

Empirical tests were made of components of the corn basis in the U.S. utilizing a general theory of intertemporal price relationships for storable commodities. These tests showed that the basis consists of a risk premium, a speculative component, and a maturity basis apart from other factors such as storage costs for storable commodities. The results provide insights into factors affecting basis patterns for corn.

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