Date of this Version
Cornhusker Economics, April 23, 1997, agecon.unl.edu/cornhuskereconomics
Multi-year hedging involves placing a hedge for more than one year and then unwinding it as physical product is sold. A recent study analyzed two-year hedges for corn in an attempt to capture the higher prices that occurred over the 23-year period of 1973- 1995. Cash prices were for No. 2 yellow corn at Omaha on October 15, or the nearest business day. Futures prices were from the December contract month at the Chicago Board of Trade.