Benefits and Costs Associated with the Wheat Storage Hedge
ID-198
Benefits and Costs Associated with the Wheat Storage Hedge
Benefits and Costs Associated with the Wheat Storage Hedge
Authored by: Doug Johnson Sam McNeill Cory Walters
Abstract
Each year producers must decide whether to store or sell their crop at harvest. Market prices are important in guiding producers on whether to store priced grain for future delivery (referred to as a storage hedge), store unpriced grain, or sell. Generally, producers know more about deciding to sell or store unpriced grain than using the storage hedge. This publication explains how a storage hedge works, when to use it, and risks and costs involved. (See glossary for definition of terms.)
Core Details
Categorical Details
Language
English
Peer Reviewed?
Yes