A NOTE ON THE FACTORS AFFECTING CORN BASIS RELATIONSHIPS

Abstract

Empirical tests were made of components of the corn basis in the U.S. utilizing a general theory of intertemporal price relationships for storable commodities. These tests showed that the basis consists of a risk premium, a speculative component, and a maturity basis apart from other factors such as storage costs for storable commodities. The results provide insights into factors affecting basis patterns for corn.Demand and Price Analysis,