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Forecasting the Basis for Corn in Western New York

Published online by Cambridge University Press:  10 May 2017

Patricia D. Taylor  and
William G. Tomek
Patricia D. Taylor
Affiliation:
Continental Grain Company
William G. Tomek
Affiliation:
Cornell University
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Abstract

This study develops a simple model to forecast the basis for corn in a specific region. Improved forecasts can improve hedging decisions. Basis behavior, however, depends on explanatory variables that are themselves difficult to forecast with precision. This limits the usefulness of the basis model, but it does offer some benefit over naive forecasts.

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Type
Articles
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Journal of the Northeastern Agricultural Economics Council , Volume 13 , Issue 1 , April 1984 , pp. 97 - 102
Copyright
Copyright © Northeastern Agricultural and Resource Economics Association 

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Footnotes

This article is based on Taylor's M.S. thesis. We gratefully acknowledge the suggestions of K. L. Robinson, D. G. Sisler, and L. W. Tauer.

References

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