Non-convergence in grain markets solved

Non-convergence in grain markets solved

Researchers finally discover cause of grain futures divergence after close to three years of work.

SOMETHING extraordinary happened in the grain futures markets beginning in 2005: The cash price and futures price, which normally converge by the time a grain contract matures, weren't coming together. Instead, they were moving further apart — and not by just a little.

By September 2008, the wheat futures price was an unprecedented $2.00/bu. higher than the spot price in Toledo, Ohio, at delivery. What caused this unusual non-convergence was a simp

All access premium subscription

This content requires a subscription to Feedstuffs in order to access. If you are a paid subscriber, use your email and password to Log In now.


Current Feedstuffs Subscribers: Online and mobile access are now included at no charge to you. To read this article, use your subscriber email and password to log-in to your account (or contact us for assistance in updating your account.)


Not Currently a Subscriber: Subscribe NOW to Feedstuffs and receive our print and/or digital publications, enewsletters and premium online content. Visit Feedstuffs.com and click on Subscribe at the top of the page for more information.


SUBSCRIBE NOW https://circulation.feedstuffs.com/Publications.aspx


TO RENEW YOUR SUBSCRIPTION https://circulation.feedstuffs.com/SubscriptionOffers.aspx


Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish