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Extension Publications

Benefits and Costs Associated with the Wheat Storage Hedge

Benefits and Costs Associated with the Wheat Storage Hedge

ID-198: Benefits and Costs Associated with the Wheat Storage Hedge

Authored by: Doug Johnson Sam McNeill Cory Walters

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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

Publication ID

ID-198

Status

New

Publication Date

Jan. 24, 2012

Series

Multi-Part Series

N/A


Categorical Details

Language

English

Peer Reviewed?

Yes

Contact Information

Tawana Brown
Associate Director, Educational Publications

361 Blazer Dining 343 S. Martin Luther King Blvd. Lexington, KY 40526-0012

+1 (859) 257-7566

tawana.brown@uky.edu