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301 cheats final - Basisweak 1 2 3 Bigsurplusstocks 4 5 6...

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Long hedge  is buying in futures Short is selling in the futures Basis weak 1. Good weather at harvest 2. Big crops in competing countries 3. Big surplus stocks 4. Inadequate storage capacity of farm 5. Light participation in government price support programs 6. Shortage of rail cars/ trailers/ barges 7. Producers need cash immediately Basis strong 1. Bad weather at harvest 2. Small crops in competing countries 3. Small surplus stocks 4. Adequate storage capacity of far4m 5. Heavy participation in government price support programs 6. Abundance of rail cars/trailers/barges 7. Producers do not need cash immediately The purchase or sale of a futures contract as a temporary substitute for a merchandising  transaction that will be made at a later date. Usually this involves opposite transactions in  the futures market from those made in the cash market. It is anticipated that since the price 
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  • Spring '10
  • dr.john
  • futures market, price support programs, government price support, Cash buying price, hedge Cash selling, hedge Cash buying

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