Most of Indiana corn and
soybeans are placed into storage at harvest time to be delivered to market at a
later date. Indiana farmers have many options regarding how and when to sell this
grain. The present research addresses the issue of how to maximize the expected
net returns to storage. The three central questions are: (i) which crop
produces better returns? (ii) should the grain be stored unpriced or hedged
using futures? and (iii) how long should grain be stored? Expected net returns for
corn were maximized by storing unpriced until spring. However, unpriced corn
storage provided positive returns less frequently than storage hedging.
Unpriced soybean storage was better on average, and also produced positive
returns more frequently than storage hedging. Returns were higher for soybeans
than corn.
| Identifer | oai:union.ndltd.org:purdue.edu/oai:figshare.com:article/8016185 |
| Date | 15 May 2019 |
| Creators | Aaron Jonathan Edwards (6615695) |
| Source Sets | Purdue University |
| Detected Language | English |
| Type | Text, Thesis |
| Rights | CC BY 4.0 |
| Relation | https://figshare.com/articles/Storage_Returns_of_Indiana_Corn_and_Soybeans/8016185 |
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