Non-Convergence in Domestic Commodity Futures Markets: Causes, Consequences and Remedies
by Michael K. Adjemian
, Philip Garcia, Scott Irwin, and Aaron Smith
Economic Information Bulletin No. (EIB-115) 33 pp, August 2013
Cover image for EIB115 From 2005-10, the price of expiring U.S. corn, soybean, and wheat futures contracts settled much higher than corresponding delivery market cash prices. Theories about why this unprecedented non-convergence occurred are examined along with policy options to prevent it in the future.
Keywords: Commodity futures, delivery, index funds, grains, non-Convergence, price discovery, risk management, speculation, storage
In this publication...
Need help with PDFs?