@article{Kalous:190712,
      recid = {190712},
      author = {Kalous, Tod and Dhuyvetter, Kevin and Kastens, Terry},
      title = {A Case Study of a Market Advisory Service's Performance in  Marketing Hard Red Winter Wheat in Kansas},
      journal = {Journal of the ASFMRA (American Society of Farm Managers  and Rural Appraisers)},
      address = {2005},
      number = {387-2016-22863},
      pages = {10},
      year = {2005},
      abstract = {Crop marketing, and
specifically the efficiency  of
markets, is a topic of much
interest and debate in  the
agricultural industry. This case
study examines the  effectiveness
of a marketing advisory service
(MAS) in  pricing hard red
winter wheat in Kansas. The
post-harvest  recommendations
of this particular MAS followed
by a wheat  producer in
northwest Kansas over a 32-
year time period  were
analyzed. Results indicate that
the net price received  following
the MAS's recommendations
were statistically no  better than
simply selling at harvest given
commercial  storage costs and
bank interest rates. With lower
storage  costs, the MAS did
receive a premium of 13¢ per
bushel  compared to harvest
sales. A cash marketer storing
and  selling grain at the same
time as the MAS marketer,  but
without forward contracting,
would have been 10¢  per
bushel worse off than the MAS
marketer. This MAS gain  was
due to its ability to secure a
stronger basis level and  pick up
short term price movement
gains. However, these  strengths
of the MAS were offset by its
fees and by the  fact that they
tended to store wheat too long.},
      url = {http://ageconsearch.umn.edu/record/190712},
      doi = {https://doi.org/10.22004/ag.econ.190712},
}