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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