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Showing 1 to 1 of 1 for “"Variable storage rate"”.
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The probability of nonconvergence and its spatial effects in the hard red winter wheat market
… basis risk exposure when hedging their grain. A variable storage rate (VSR) mechanism was adopted in 2018 for the hard red winter (HRW) wheat market to prevent nonconvergence. The VSR adjusts the storage rate on delivery instruments dependent upon the amount of financial full carry present in the …