The Marketing Style of Advisory Services for Corn and Soybeans in 1995

AgMasReport 1999-02

64 Pages Posted: 30 Oct 2000

See all articles by Roberto Bertoli

Roberto Bertoli

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Carl Zulauf

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Scott H. Irwin

University of Illinois at Urbana-Champaign

Thomas E. Jackson

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics

Date Written: August 1999

Abstract

The 1995 marketing styles for the 25 market advisory service programs included in the AgMAS Project were developed in two steps. The first step was the construction of a detailed "menu" of the tools and strategies used by each of the advisory programs in marketing corn and soybeans. The menu describes the type of pricing tool, frequency of transactions, and magnitude of transactions. The second step was the development of a daily index of the net amount sold by each market advisory program. To construct such an index, the various futures, options, and cash positions recommended for a program on a given day were weighted by the respective position "delta." When the daily values of the index were plotted for the entire marketing period, the marketing "profile" for a program was generated. The results show that advisory programs made a relatively small number of recommendations that primarily involved cash marketing strategies, not futures and options, non-cash marketing recommendations were typically held open for a short period of time, and the pre-harvest amount sold averaged 35 percent for corn and 30 percent for soybeans.

JEL Classification: C81, D40, D82, G14, Q11, Q12, Q13, Q14

Suggested Citation

Bertoli, Roberto and Zulauf, Carl and Irwin, Scott and Jackson, Thomas E., The Marketing Style of Advisory Services for Corn and Soybeans in 1995 (August 1999). AgMasReport 1999-02, Available at SSRN: https://ssrn.com/abstract=244505 or http://dx.doi.org/10.2139/ssrn.244505

Roberto Bertoli

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
Urbana, IL 61801
United States
(210)333-2792 (Phone)
(217) 333-5538 (Fax)

Carl Zulauf

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Scott Irwin (Contact Author)

University of Illinois at Urbana-Champaign ( email )

344 Mumford Hall
1301 W. Gregory Dr.
Urbana, IL 61801
United States
217-333-6087 (Phone)

HOME PAGE: http://https://scotthirwin.com/

Thomas E. Jackson

University of Illinois at Urbana-Champaign - Department of Agricultural and Consumer Economics ( email )

1301 W. Gregory Drive
434a Mumford Hall
Urbana, IL 61801
United States
(217) 333-2792 (Phone)
(217) 333-5538 (Fax)

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