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Recent Convergence Performance of Futures and Cash Prices for Corn, Soybeans, and Wheat

by Linwood Hoffman and Nicole Aulerich

Feed Outlook No. (FDS-13L-01) 21 pp, December 2013

From 2005 to 2011, wheat, corn, and soybean futures contracts were affected by growing discrepancies between expiring futures prices and cash prices--a problem known as non-convergence. In response, the futures exchanges modified their contracts to better reflect market conditions. Those modifications appear to have improved convergence in these markets since 2011.

Keywords: Agricultural commodity futures, convergence, futures and cash prices, futures contract, delivery markets, storage rates, corn, soybeans, wheat

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Last updated: Monday, December 30, 2013

For more information contact: Linwood Hoffman and Nicole Aulerich