Files
Abstract
We study the spatial patterns to wheat basis (spot price minus futures price) for wheat contracts between 2005 and 2009. Restricting our attention to a single delivery market—Toledo, Ohio— and to cash markets within 100 miles of Toledo, we measure the co-movement of basis at inland markets with basis at Toledo. We examine the degree to which that co-movement is disrupted for contracts that failed to converge at delivery time.