Cost of Forward Contracting Hard Red Winter Wheat

Posted: 3 May 2001

See all articles by John Townsend

John Townsend

Panhandle State University - Department of Agricultural Economics

B. Wade Brorsen

Oklahoma State University - Stillwater - Department of Agricultural Economics

Abstract

Two methods were used to estimate the cost of forward contracting hard red winter wheat. One hundred days before delivery, the estimated cost of forward contracting ranged from six cents/bu. to eight cents/bu. Thus, further evidence is provided that the cost of forward contracting grain is not zero.

Key Words: forward contracting, nonparametric regression, wheat.

Suggested Citation

Townsend, John and Brorsen, B. Wade, Cost of Forward Contracting Hard Red Winter Wheat. Available at SSRN: https://ssrn.com/abstract=244626

John Townsend

Panhandle State University - Department of Agricultural Economics ( email )

Goodwell, OK 73939
United States
800-664-6778 x262 (Phone)

B. Wade Brorsen (Contact Author)

Oklahoma State University - Stillwater - Department of Agricultural Economics ( email )

Stillwater, OK 74078-6026
United States
405-744-6836 (Phone)
405-744-8210 (Fax)

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