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

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