Review and Evaluation of Grain Marketing and Hedging Strategies for Virginia Grain Producers
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Date
2023-06-28
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Virginia Tech
Abstract
Virginia's regional grain prices exhibit high volatility due to the state's unique spatial variability and supply and demand fundamentals. This study explains Virginia's basis patterns for corn, soybeans, and wheat. Discussion of times when there were outstanding economic or fundamental market movers that affected basis in Virginia is also offered. The feasibility and process of hedging using futures is explained and evaluated in a case study. Possible marketing decisions based on the findings are presented in an easy and accessible manner, so that producers and extension agents can use this information to make real-time grain marketing decisions.
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Keywords
Virginia Grain Marketing, Price Risk Management, Futures Hedging, Basis