Stochastic Storage Cost Model for Grains Futures

How storage cost affects the futures prices

The world is experiencing the biggest supply shock to global grains markets in recent history. Prices of various crops, including wheat, soy, and corn, have skyrocketed. Take wheat as an example, the futures prices have jumped to record high in March.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Tim Leung, Ph.D.

Tim Leung, Ph.D.

Boeing Endowed Chair Professor of Applied Math, Director of the Computational Finance & Risk Management (CFRM) Program at University of Washington, Seattle