Chapter 7: Carrying charges in grain markets

Edward Usset ( 2013 )

Summary

In seasonally produced crops (i.e. crops that can be stored like grains), price differences between different futures delivery months are known as carrying charges. The relationship between free grain stocks and carrying charges is explored. The difference between positive and negative carrying charges (aka an inverted market) is also explored.

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Publisher

The Center for Farm Financial Management

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Written Material