Is Storage at a Loss Merely an Illusion of Aggregation?

The storage at a loss paradox of positive inventories despite inadequate spot-futures price spread coverage of storage costs is an unresolved issue of long-standing interest to economists. Alternative explanations include risk premiums for futures market speculators, convenience yields from having inventories on hand, and the mismeasurement/aggregation of data. T-test analyses of disaggregated data suggest soybean price behavior consistent with intertemporal arbitrage conditions and corn price behavior that may imply convenience yields.


Subject(s):
Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/19005
Total Pages:
22
Series Statement:
2006 NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management




 Record created 2017-04-01, last modified 2017-08-24

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