@article{MacDonald:49269,
      recid = {49269},
      author = {MacDonald, Stephen and Meyer, Leslie A.},
      title = {Futures Basis for Cotton:  Impact of Globalization and  Structural Change},
      address = {2009},
      number = {319-2016-9817},
      series = {Selected Poster},
      pages = {23},
      year = {2009},
      abstract = {A model of commodity futures contract basis was developed  based on Working’s theory of the price of storage.  An  error-correction model was estimated for the basis for the  InterContinental Exchange (ICE) #2 cotton contract maturing  in December during 2000-08.  The model was also extended to  incorporate the impact of changes in market activity that  evolved as financial markets and commodity price behavior  underwent significant changes after 2005.  The model  captured the inversion of basis following the collapse of  China’s crop in 2003, but the shock realized during 2008  may have been in part driven by one-time events not  included in the model.  Estimates from the error-correction  model suggest an extended period for the return of basis to  equilibrium, spanning from about 1 ½ to 2 months.},
      url = {http://ageconsearch.umn.edu/record/49269},
      doi = {https://doi.org/10.22004/ag.econ.49269},
}